The Federal Government’s response to the McClure report on social welfare grasps the problem, but its solution is not smart enough. Since it was elected in 1996, the Government has grasped both popular sentiment and good sense in turning around welfare culture. Welfare, whether it be based upon unemployment, parenthood, age or disability is not an automatic right. The taxpaying community has a right to insist that those who get government benefits have to show not only instant need but a willingness to take steps to get themselves out of a situation of need and into self-support. Sure, if that is not possible, then the welfare benefits continue, but if there is no willingness to try to come out of welfare dependency, then benefits should, after appropriate warning, dry up. Few have an argument with that approach.
Secondly, the Government has rightly approached the question of welfare on the basis that throwing money at it is not the best approach and will not help either taxpayers or recipients in the long run.
Thirdly, the Government, or at least Treasurer Peter Costello, has recognised that the present welfare system often acts as a disincentive to move from welfare to work. This is because the different in family take home income can be as little as a dollar an hour after moving from welfare to work – and that is without taking into account the costs of going to work such as clothes. Transport and the lost opportunity of using the time for cost-saving by working at home to produce clothing, food, child-care and maintenance of shelter. In short, some families are worse off when they go to work. The tax system, the deductions from welfare payments and the costs of working militate against people moving from work to welfare.
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