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Even the International Monetary Fund recognises that the best way to grow an economy is to reduce the divide between rich and poor, ensuring that all people have a chance to participate in the social and economic life of a country. The Coalition government remains resolutely opposed to this growing body of evidence, continuing to rely on economic structures that entrench disadvantage, then blame the poor for their fate. The Budget provides tax cuts to the rich and service cuts to the rest.
As the freshly minted Social Services Minister, Scott Morrison has moved quickly to soften the tough stance he took in the Immigration portfolio. But it won't necessarily be easy. Patrick McClure has presented him with a massively controversial report on welfare reform which, if acted upon, would significantly reduce the incomes of a million marginalised Australians.
Transitioning people with episodic illnesses like bipolar and severe depression from disability support into the workforce is problematic. However, one obvious solution to help some people in this group has been overlooked to date: self-employment.
Ricky was intimidating at first sight. He was tall and very broad shouldered, his blonde hair wispy, and dishevelled. He begins a round that involves several agencies, none of which can help. A group that helps disabled people has given him a computer. In the weeks we have been searching for a solution we have come to care for this young man who is so determined to learn.
The Government's McClure interim welfare report is predicated on the big lie that welfare is the problem and the market is the solution. The long wait of the excluded for some of the wealth and resources, for some of the hope to trickle down, is one of the most audacious con jobs in modern history. It is not misfortune. It is not a mistake. It is not the fault of the excluded. It is an attack against ordinary people who are made to bear the burden of inequality.
The Budget does not signal an end to the 'age of entitlement', as there are still plenty of beneficiaries of government expenditure or foregone revenue. You don't need to be an economist to see that collectively the Budget measures will impact negatively on the income levels of the poor and disadvantaged. The discussion now must be who will pick up the pieces left behind by Government in developing a system with obvious gaps.
The budget problems are not caused by Newstart or disability pensions, which have been declining as a proportion of economic activity. Had the Howard Government not been so generous with its tax cuts to upper and middle income groups, there would today be no budget deficit.
There is a bizarre and remorseless logic to some of Joe Hockey's proposals, such as the absorption of Centrelink by Australia Post and making Medibank Private responsible for delivering the services of the National Disability Insurance Scheme. ACTU president Ged Kearney described the Centrelink proposal as 'moving into space-cadet territory'. She's right: the space cadets are flying the ship now.
Last week the political leaders were brawling over assistance payments for middle-class Australians, with Tony Abbott claiming to be promoting 'tax justice for families'. A new Human Rights Commission report has shown how our super and tax systems fail unpaid carers, who are needed to sustain many families. But not the ones whose votes matter most.
When budgets are tight, governments seek savings by moving people from an expensive payment to cheaper payment categories. By moving a larger number of single parents from parenting payment to the cheaper Newstart allowance the Government will effectively remove $686 million out of the hands of low income families.
If you walked into a public service office in the early 1980s, you'd see typing pools, mailrooms and whole floors full of people doing routine clerical work. People with disabilities were disproportionately employed in low level positions. Today, most of those positions have gone.
A third of taxpayer-funded superannuation concessions — around $10 billion a year — are directed to the top 5 per cent of income earners. People living on or below the poverty line get no such support. This week's Tax Forum must ask: Are we proud of how we redistribute our national wealth?
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