Welfare groups say government’s controversial debt recovery program could push low-income earners into homelessness
The Coalition’s plan to dock people’s welfare if they repeatedly fail
to pay fines has been denounced as a “brutal” measure that will drive
those on the lowest incomes into homelessness.
Tuesday’s federal budget delivered a string of hits for welfare recipients, as the Coalition continued its push to glean savings from its social security spending.
There was no increase to the poverty-level Newstart payment, despite the pleas of community groups, and the already overstretched Department of Human Services was targeted with 1,200 job cuts.
The Coalition’s controversial debt recovery program has been extended, and new migrants will have to wait four years, instead of the current two, before accessing Newstart.
Advocates say the most punitive measure is a plan to dock the welfare of people who are repeatedly unable to pay fines. The commonwealth would be able to make compulsory deductions from the welfare of “serial fine defaulters who have outstanding state and territory court-imposed fines”. The government would also be able to suspend or cancel welfare for anyone with an outstanding arrest warrant for a serious criminal offence.
The National Social Security Rights Network has warned the measure will compound the plight of Australia’s most disadvantaged. The network’s executive director, Leanne Ho, said it risked pushing welfare recipients into homelessness or, in some cases, prison.
It also flew in the face of programs designed to ensure the inability to pay a fine didn’t snowball into more serious problems for the lowest paid.
“The same kind of people who generally end up with an amount of fines they just can’t deal with are going to end up homeless or, in a lot of these cases, possibly in prison,” Ho told Guardian Australia.
“It’s probably one of the most urgent measures we want to discuss with the department. The reality of people’s lives when they’re in that position is that things snowball out of control, one fine leads to another, and the capacity for people to deal with those [diminishes].”
The chief executive of the Australian Council of Social Service, Cassandra Goldie, described the measure as “particularly brutal”.
“People on low incomes are just going to be sent into homelessness,” said Goldie.
“It’s completely out of touch with the reality of people on very low incomes and the capacity for people to pay these kind of fines and debt.”
Goldie said anyone who believed last night’s budget was “victimless” was clearly out of touch.
“There are clear victims from this budget. It is not a budget for people on a low income, and it certainly doesn’t guarantee essential services,” Goldie said.
It is unclear how much the government is looking to save through the fine recovery measure. It requires negotiation with the states and territories before it can be implemented.
The concept could clash with state-based programs such as the work and development order scheme in New South Wales, which allows vulnerable people, including Centrelink recipients, to clear fines by completing activities instead of paying. Individuals with a mental illness, for example, can do unpaid work or undertake treatment or counselling and have their outstanding fines cleared.
Tuesday’s federal budget delivered a string of hits for welfare recipients, as the Coalition continued its push to glean savings from its social security spending.
There was no increase to the poverty-level Newstart payment, despite the pleas of community groups, and the already overstretched Department of Human Services was targeted with 1,200 job cuts.
The Coalition’s controversial debt recovery program has been extended, and new migrants will have to wait four years, instead of the current two, before accessing Newstart.
Advocates say the most punitive measure is a plan to dock the welfare of people who are repeatedly unable to pay fines. The commonwealth would be able to make compulsory deductions from the welfare of “serial fine defaulters who have outstanding state and territory court-imposed fines”. The government would also be able to suspend or cancel welfare for anyone with an outstanding arrest warrant for a serious criminal offence.
The National Social Security Rights Network has warned the measure will compound the plight of Australia’s most disadvantaged. The network’s executive director, Leanne Ho, said it risked pushing welfare recipients into homelessness or, in some cases, prison.
It also flew in the face of programs designed to ensure the inability to pay a fine didn’t snowball into more serious problems for the lowest paid.
“The same kind of people who generally end up with an amount of fines they just can’t deal with are going to end up homeless or, in a lot of these cases, possibly in prison,” Ho told Guardian Australia.
“It’s probably one of the most urgent measures we want to discuss with the department. The reality of people’s lives when they’re in that position is that things snowball out of control, one fine leads to another, and the capacity for people to deal with those [diminishes].”
The chief executive of the Australian Council of Social Service, Cassandra Goldie, described the measure as “particularly brutal”.
“People on low incomes are just going to be sent into homelessness,” said Goldie.
“It’s completely out of touch with the reality of people on very low incomes and the capacity for people to pay these kind of fines and debt.”
Goldie said anyone who believed last night’s budget was “victimless” was clearly out of touch.
“There are clear victims from this budget. It is not a budget for people on a low income, and it certainly doesn’t guarantee essential services,” Goldie said.
It is unclear how much the government is looking to save through the fine recovery measure. It requires negotiation with the states and territories before it can be implemented.
The concept could clash with state-based programs such as the work and development order scheme in New South Wales, which allows vulnerable people, including Centrelink recipients, to clear fines by completing activities instead of paying. Individuals with a mental illness, for example, can do unpaid work or undertake treatment or counselling and have their outstanding fines cleared.
On Wednesday morning, Labor also criticised the job cuts to the Department of Human Services. The party’s spokeswoman, Linda Burney, said the $50m provided to boost call centre capacity was not new money.
“This is straight up privatisation of an important service,” Burney said. “Piece by piece, the Turnbull government is selling these jobs to labour hire firms.”
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