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IN
FOCUS
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Federal Budget 2005 |
Snakes
and ladders for jobless in Federal Budget, says ACOSS
ACOSS
responded to the Federal Budget 2005 on 6 May 2005 at Parliament House,
Canberra.
"This
Budget puts jobless Australians into a dangerous game of snakes and ladders.
Some people get extra services which give them a push up the ladder into work,
while many sole parents, their children and people with disabilities get payment
cuts and harsher penalties which will slide them deeper into poverty," said
ACOSS President Andrew McCallum.
"Many
sole parents will lose $20 a week and many people with disabilities will lose
$40 a week in payments. We are disappointed that people who are already
struggling on payments of just $200-240 a week will be on even lower payments
under this Budget package."
"New
investment in childcare and wage subsidies for long term unemployed people is
welcome but overall investment is modest. Half of all new spending on welfare
reform will be taken up in administrative costs."
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Snakes
in this year's Budget
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Ladders
in this year's Budget
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- Changes
to eligibility criteria for DSP means that around 70,000 people with
disabilities over the next 3 years will be deemed ineligible for DSP
and lose $40 a week.
- Around
80,000 sole parents with children aged 6-16 years who apply for
parenting pensions will be put on unemployment payments and lose $20
a week over the next 3 years.
- Around
25,000 long term unemployed people will have to do Work for the Dole
for 25 hours a week for 10 months.
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- 68,000
places in employment programs for people with disabilities was
created.
- 80,000
new places in out of school hours' care.
- 7000
long term unemployed people will benefit from wage subsidies to
encourage employers to give people experience working to increase
their skills.
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Other
changes which concern ACOSS in this year's Budget include:
Health
- ACOSS
welcomes increased funding of Indigenous health of $40 million for the
primary health care access program, $102 million Healthy for Life program to
support maternal and child health and to combat chronic disease in
Indigenous communities.
- The
increase in the Medicare Safety Net threshold from $300 to $500 for low and
middle income earners will hurt those who have chronic illnesses, and does
not address the sustainability of the scheme.
- There
are a number of measures to cut costs of the Pharmaceutical Benefits Scheme.
This includes $140 million in savings from increasing the safety net
threshold, $70.1 million from measures to prevent people from hoarding
medicines and $36 million from delisting supplements in the PBS.
Tax
- $22
billion is provided in tax cuts. Tax cuts that benefit Australia's highest
income earners should be spent on services such as health and education.
- $2.5
billion will be spent on removing the super surcharge – a tax break which
only benefits the top 5% of income earners on $100,000 or more.
Education
- Small
increases in funding for places in the Language Literacy and Numeracy
Program will benefit recently arrived migrants.
- Rising
university fees are not being addressed in this year's Budget and the levels
of income support through AUSTUDY and Youth Allowance (Student) remain
inadequate.
Indigenous
issues
- More
investment in indigenous health is welcome.
- However
the details of "Shared Responsibility Agreements" will be critical
in determining how changes are made for local communities without
reinstating a paternalistic attitude.
Source:
ACOSS, May 2005
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