Recently, News Limited published Treasury figures showing in some instances people who received welfare payments were better off than singles earning $80,000 a year. This report was then reported by many media outlets, including the Guardian.
The figures released by Treasury show that people receiving the single parent benefit have a disposable income of $66,000, giving them a higher disposable income than a single taxpayer who earns $80,000.
This is completely false and is a deliberate attempt by the Federal Government to vilify income support recipients, particularly single mothers.
The Treasury figures completely ignore that Childcare benefits are paid directly to childcare centres, not parents, and do not even come close to the full cost of childcare. All families have the same entitlements under childcare rebates and using childcare is essential for working parents.
After taking into account this portion of the Single Parent Benefit which is paid directly to Child Care centres, the correct disposable income figure for people on the Single Parent Benefit is $41,000-$42,000 (not $66,000), depending upon the exact cost of child care, which varies. This is the same as the poverty line for a one-parent family with two children in December 2014, which is $41,345.
This is second year that Joe Hockey has made this fraudulent claim.
He cannot see that people who receive large superannuation subsidies from government are an equivalent “drain” on taxpayers, despite a wealth of evidence. Rorts in the taxation system cost Australia more than $20 billion per year.
The Government does not worry about increasing child poverty (now 18%) and soaring homelessness and deprivation as services and incomes are cut.
This is another attempt to divide Australians in fear and suspicion. It further alienates and unfairly stigmatises those receiving income support. The Government owes them not only an apology about these false claims, but immediate action to address the issue of the low rate of payment.
Calculations of Gross, Net and Disposable Income for a one-parent family earning $30,000 per annum
Earned income (32 hours per week?) 1154 pf 30000 pa
*Part pension 347 9022
Family Tax Benefit A 354 9204
Family Tax Benefit B 150 3900
SUBTOTAL 2005 pf 52130
(taxable income 39022)
less tax payable 190 4940
less child care including
child care gap fees 150 – 300 (use 200 figure)
[Subtotal]  5200
Disposable Income 1615 pf 41,990
*Income Test Free Area
184.6 + 24.6 = 209
1154 – 209 = 945 x 40 cents in dollar = 37800
= 37800 div 100 = 378
Parenting Payment Rate 725.40 – 378 = pp payable = 347.40 pf [9022 pa]