Catholic Communications, Sydney Archdiocese,
17 Oct 2012
Michael Perusco, CEO of the Society of St Vincent de Paul NSW is disturbed by a University of NSW study that has found 2.26 million Australians are living below the poverty line, affecting one in eight Australian families and one in six children. But he is not surprised.
"We see the impacts of poverty right across NSW in the work we do visiting people in their homes and through our homelessness services," Mr Perusco says.
The study commissioned by the Australian Council of Social Services and compiled by academics at UNSW using the Bureau of Statistics data, uses a definition of poverty for those living on half the national median income. For a single person this is $18,680 pa and for couples with no children, $28.020. This rises to $29,899 for a single parent with two children and for a couple with two children to $39,239.
The release of the study coincides with National Anti Poverty Week which began on Sunday, 14 October and makes for sobering reading. But the continuing rise in the number of families, single parents and retirees struggling to make ends meet comes as no a surprise to welfare agencies such as Vinnies. Instead the study simply confirms what Mr Perusco says was already known or suspected through the agencies' day to day experiences helping those in need.
"At Vinnies NSW we've noticed a steady and constant demand for our services over the past few years. We're also seeing an increasing number of people who have had to turn to us for help for the first time in their lives. People who never imagined this might happen to them," he says, adding that the experience at Vinnies among social workers and counsellors is consistent with the findings of the study.
"The study shows unequivocally that Australia has a group of single men, women and families who are shut out of the economy and shut out of the opportunities the rest of us take for granted."
The study which examines those living below the poverty line for 2009-2010 reveals that more than 575,000 of these were children with half living in single parent families. A further 360,000 living below the poverty line were aged pensioners and retirees.
Mr Perusco says the ACOSS study not only draws much needed attention to the extent of poverty in a country as rich and prosperous as Australia, but reveals the total inadequacy of the Newstart allowance which has not been increased in real terms since 1994, and which Mr Perusco says, is driving people further into poverty.
From 1 January 2013, just two and a half months away, more people will be forced into poverty, he predicts and cites the bill passed last week by the Gillard Government which will transfer sole parents onto the Newstart allowance once their youngest child reaches eight years of age, slashing their fortnightly social security benefits by more than $100.
From January next year, 140,000 single parents, 90% of whom are women, will no longer be eligible for single parent benefits and will have to try to pay rent, fares, school expenses, escalating electricity and water bills as well as clothe and feed themselves and their families on a fortnightly income of $489.70 - or just $35 per day.
Dr John Falzon, CEO of the Vinnies' National Council is also extremely concerned at the Government's decision to bring the legislation forward by six months and instead of it taking effect from July 2013 as originally planned, to implement the changes in just 10 weeks time.
"The fundamental flaw of this legislation is that although it will result in a saving of $728 million over four years it will do nothing to assist sole parents into employment," he says. "You cannot help people into jobs by forcing them into poverty. You don't build people up by putting them down."
Dr Falzon points out the irony of Julia Gillard's speech in Parliament the same day the bill was passed where she made an impassioned address on gender equality and demanded women be treated equally and given the same respect as men. Her speech was picked up worldwide by women who called it a long overdue and powerful statement about sexism. But a speech on behalf of women and women's rights had little meaning when she and her Government voted the very same day to penalise more than 100,000 single mothers and their children by slashing their benefits and pushing them further into poverty.
"What we want is a country that provides the best opportunities for all children. But with this move which is part of the Government's bid to produce a budget surplus, even more children will be forced into poverty," Mr Perusco warns and fears even more families will be driven into homelessness.
Over one third of those whose main income is social security now live below the poverty line. This figure includes 52% of those on the Newstart allowance which is expected to rise dramatically once sole parents are transferred on to Newstart from the single parent benefit in two and a half months time.
"Australia's housing crisis has a lot to do with the poverty we are seeing, in particular in Sydney where there are very high housing costs whether to buy or to rent. This means families have less and less money for other essentials," says Mr Perusco.
"We need to be prepared as a community to take a long hard look at the housing market and be prepared for fundamental reforms that will lead to a better functioning and fairer system," he says. "At the moment only a few in the community receive significant benefits from today's housing market while the market drives others into poverty."
Mr Perusco believes a re-think about public housing and also long overdue tax reforms could play a large part in tackling and reducing poverty in Australia. He says under the present system, tax concessions for negative gearing and concessional capital gains rates have not only pushed up house prices and rents, but are being subsidised by the tax payer to the tune of $6-$7 billion dollars per year.
But instead of the Government embarking on tax reforms to harness these funds, he says it is instead passing a bill to penalise some of Australia's poorest and most vulnerable single parent families and force them further into poverty.
"In a country as wealthy as Australia this is a disgrace."
SHARED FROM ARCHDIOCESE OF SYDNEY
17 Oct 2012
Single mothers face sharp drop in benefits
"We see the impacts of poverty right across NSW in the work we do visiting people in their homes and through our homelessness services," Mr Perusco says.
The study commissioned by the Australian Council of Social Services and compiled by academics at UNSW using the Bureau of Statistics data, uses a definition of poverty for those living on half the national median income. For a single person this is $18,680 pa and for couples with no children, $28.020. This rises to $29,899 for a single parent with two children and for a couple with two children to $39,239.
Hardest hit will be women who make up 90% of Australia's single parents
"At Vinnies NSW we've noticed a steady and constant demand for our services over the past few years. We're also seeing an increasing number of people who have had to turn to us for help for the first time in their lives. People who never imagined this might happen to them," he says, adding that the experience at Vinnies among social workers and counsellors is consistent with the findings of the study.
"The study shows unequivocally that Australia has a group of single men, women and families who are shut out of the economy and shut out of the opportunities the rest of us take for granted."
The study which examines those living below the poverty line for 2009-2010 reveals that more than 575,000 of these were children with half living in single parent families. A further 360,000 living below the poverty line were aged pensioners and retirees.
Mr Perusco says the ACOSS study not only draws much needed attention to the extent of poverty in a country as rich and prosperous as Australia, but reveals the total inadequacy of the Newstart allowance which has not been increased in real terms since 1994, and which Mr Perusco says, is driving people further into poverty.
Michael Perusco, CEO of Society of St Vincent de Paul NSW
From January next year, 140,000 single parents, 90% of whom are women, will no longer be eligible for single parent benefits and will have to try to pay rent, fares, school expenses, escalating electricity and water bills as well as clothe and feed themselves and their families on a fortnightly income of $489.70 - or just $35 per day.
Dr John Falzon, CEO of the Vinnies' National Council is also extremely concerned at the Government's decision to bring the legislation forward by six months and instead of it taking effect from July 2013 as originally planned, to implement the changes in just 10 weeks time.
"The fundamental flaw of this legislation is that although it will result in a saving of $728 million over four years it will do nothing to assist sole parents into employment," he says. "You cannot help people into jobs by forcing them into poverty. You don't build people up by putting them down."
Dr Falzon points out the irony of Julia Gillard's speech in Parliament the same day the bill was passed where she made an impassioned address on gender equality and demanded women be treated equally and given the same respect as men. Her speech was picked up worldwide by women who called it a long overdue and powerful statement about sexism. But a speech on behalf of women and women's rights had little meaning when she and her Government voted the very same day to penalise more than 100,000 single mothers and their children by slashing their benefits and pushing them further into poverty.
PM Julia Gillard denounces sexism and demands respect and equality while slashing benefits to single mums
Over one third of those whose main income is social security now live below the poverty line. This figure includes 52% of those on the Newstart allowance which is expected to rise dramatically once sole parents are transferred on to Newstart from the single parent benefit in two and a half months time.
"Australia's housing crisis has a lot to do with the poverty we are seeing, in particular in Sydney where there are very high housing costs whether to buy or to rent. This means families have less and less money for other essentials," says Mr Perusco.
"We need to be prepared as a community to take a long hard look at the housing market and be prepared for fundamental reforms that will lead to a better functioning and fairer system," he says. "At the moment only a few in the community receive significant benefits from today's housing market while the market drives others into poverty."
Mr Perusco believes a re-think about public housing and also long overdue tax reforms could play a large part in tackling and reducing poverty in Australia. He says under the present system, tax concessions for negative gearing and concessional capital gains rates have not only pushed up house prices and rents, but are being subsidised by the tax payer to the tune of $6-$7 billion dollars per year.
But instead of the Government embarking on tax reforms to harness these funds, he says it is instead passing a bill to penalise some of Australia's poorest and most vulnerable single parent families and force them further into poverty.
"In a country as wealthy as Australia this is a disgrace."
SHARED FROM ARCHDIOCESE OF SYDNEY
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