Saturday, 30 December 2017

'Who are they saying we should cut from?': critics round on Eric Abetz over welfare

Extract from The Guardian

The Liberal senator has been criticised by Labor and the Greens for demonising welfare recipients

Senator Eric Abetz
Eric Abetz has been criticised for calling for further cuts to welfare spending based on spurious comparisons of the distribution of tax dollars. Photograph: Mike Bowers for the Guardian


Calls for spending cuts by the Liberal senator Eric Abetz based on spurious comparisons of the distribution of tax dollars have been criticised as demonising welfare recipients.
Treasury figures, published in response to a question on notice from Abetz, showed of the $11,427 in tax paid by the “average” earner, $4,326, or $83 a week, was spent on social security, while $474, or $9 a week, was spent servicing national debt.
Abetz seized on those figures, first published by the West Australian, to call for spending cuts.
But the Greens family and community services spokeswoman, Rachel Siewert, said the comparison was false. “We have developed a social safety net that ensures that everyone in our community has the basic necessities,” she said.
“The aged pension has not gone up recently [in real terms]. Neither has the disability support pension. So people who advocate cuts to income support – who are they saying we should cut from? Who should we not support?”
Aged care makes up the biggest portion of Australia’s welfare spend, with the average taxpayer, judged to be earning about $58,000 by Treasury for the figures it provided, contributing $1,822 ($35 a week) for pensions and associated support.
That same average earner would contribute, on average, only $326 ($6 a week) for someone receiving unemployment benefits.
Labor’s social services spokeswoman, Jenny Macklin, said the demonisation of welfare recipients had to stop. “The latest OECD report shows that Australia has one of the most sustainable pension systems in the world,” she said.
“The rate of Newstart has been widely criticised as inadequate by many groups including the Business Council of Australia, which makes the point that its low level is actually a barrier to effective job searches and employment.
“These payments provide a vital safety net to people unable to work, and play an important role in alleviating poverty. Australia has one of the most well-targeted social security systems in the world.”
The average Australian worker spends $1,022, or about $20 a week, on defence, while just $106 a year from their tax is used on immigration. 

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