Treasury releases false figures

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.

cost of super annuation comapred with aged pension

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 Payments:

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]                                                    [390]                        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]