Wages

Federal Government hurts families

ACOSS has updated research by the University of New South Wales Social Policy Research Centre that shows:

Ø The bare minimum cost of raising a primary school kid, including for food and clothing is $137 per week - family tax benefit plus the child component of rent assistance is only $76 pw.

Ø The bare minimum cost of raising teenagers aged 13 - 15 years is $152 pw - the current rate of family tax benefit (plus the child component of rent assistance) for a teenager between 13 - 15 years is only $94 pw.

Ø The maximum rate of Youth Allowance for a 16 or 17 year old at home is a mere $85 pw - which is even less than income support for younger children.

ACOSS Deputy President, Ms Sue Ham said: "Members of the government and opposition have been talking up tax cuts for those who are well off. This is a lousy way to help ordinary families with kids.

"The $4 a week 'sandwich and milkshake' tax cuts earlier this year cost $2.4 billion. This was wasteful and unfair; the money was spread too thinly. Using and improving the family tax benefit and income support system is the key to a fairer way of helping those who really need it and means money is not wasted in a give away to the well-off.

"Instead of cutting taxes for the well off, family tax benefit and income support should reflect the actual cost of raising kids."

The costs of a child in a low income family, compared with Family Tax Benefit Part A (children up to 15 years) and Youth Allowance (children over 15 years) (dollars per week in September 2003)

Age of child:
Under 5 years
5-12 years
13-15 years
16-17 years
18-24 years

Low income Budget Standards*

$98
$137
$152
$163*
$178*

AMP-NATSEM study (low income families)
$56
$100
$132
$217
$219

Child/youth payments (FTBA, YA, child share of RA)
$76
$76
$94
$85
$102

Sources: DSS 1998, AMP-NATSEM 2002, Centrelink data; Notes: Child/Youth payments includes: (FTB( Part A but not Part B), Youth Allowance, and the child's share of Rent Assistance; The SPRC Budget Standards only extend to age 14. A trend line has been added to extend them hypothetically to older children. Assumptions, data and sources available from ACOSS.

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© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/campaigns/public_sector_wages/20031216_175.html
Last Modified: 15 Nov 2005