Friday, June 04, 2021

Benefit income versus income from work

 Another graph from Perry's latest report:


This is a depiction of core benefits compared to before tax minimum wage and after tax average wage. Note Accommodation Supplement, Winter Energy Payment and Best Start are not included.

The AS pays a maximum rate of $305 for a sole parent with two children. If one child was receiving Best Start that's another $60 and the Winter Energy Payment is $32.

If someone on the blue line (DPB/SPS +2ch) was receiving these extra payments it would push the line up to almost the 'after tax average wage' line.

I accept that rents are very high and the sole parent is still struggling.

But I come back to the reality that being a sole parent is a viable option if that's the environment in which you were raised. And it's only going to become more viable.

From April 1, 2021 beneficiaries can earn up to $160 before their benefit is reduced. This is a large rise from the previous $90 on Jobseeker and $115 on Sole Parent Support. 

Add that to the blue line and it'll push it above the 'after tax average wage' line.

It is an unavoidable conclusion that dependency on the state is set to grow.


1 comment:

Mark Wahlberg said...

Combine the wages with many foodbanks delivering a better quality of free tucker, the benefits of benefits make working for a living a mugs game.