I was surprised by these figures released by Joe Hockey.
My OH works part time and he would be financially better off not working.
Are our welfare payments too generous and a disincentive to work?
Joe blasts ‘welfare rich’ who have more money to spend than workers
- SAMANTHA MAIDEN NATIONAL POLITICAL EDITOR
- THE SUNDAY TELEGRAPH
- MAY 16, 2015 11:30PM
‘More money than workers’: Federal Treasurer Joe Hockey,
TAXPAYERS have a right to know how much welfare they are really paying for, Treasurer Joe Hockey said.
In an exclusive interview with The Sunday Telegraph, Mr Hockey said he had insisted that the federal Budget papers reveal the true disparity in disposable income between people who worked full-time and those who received welfare.The figures show that singles earning $80,000 a year have less disposable income than a single parent with two kids earning $30,000 when welfare is factored in.And a double-income family earning $100,000 is in some cases paying no net tax when childcare assistance and middle class welfare are offset against income tax.Mr Hockey has demanded that the Budget papers reveal for the first time the disposable income, tax contribution and welfare bill for households to help voters understand where their tax is going.
The figures show a single parent with two children under six who earns $30,000 a year can generate a disposable income of around $66,000 when welfare is factored in.By comparison, a full-time worker without kids would need to earn around $90,000 a year to generate a similar disposable income.
Private income Government assistance Income tax Disposable income Sole parent with 2 kids under 6 $30,000 $38,838 $2,534 $66,304 Pensioner couple with $400,000 non-home assets $11,791 $29,864 $0 $41,6555 Single person working 5 days a week $80,000 $0 $19,147 $60,853
“People need to know where their taxpayer money is going. This gives them the chance to see”The figures also reveal that pensioners can have assets worth $400,000, not including the family home, and still claim $30,000 a year in welfare.A full-time worker earning an average salary of $79,454 would need to work for nearly 18 months to pay enough tax to fund one such yearly pension.While the figures may shock some voters, Mr Hockey said taxpayers had a right to know.“You need everyone to pay tax. Individual income tax is $190 billion. Social security and welfare spending is $154 billion,” said Mr Hockey.“People need to know where their taxpayer money is going. This gives them the chance to see - and if they are receiving payments, it doesn’t come from a money tree in Canberra, it comes from someone else’s taxes.’’The figures also show families where both parents work are also substantially better off because they enjoy two tax-free thresholds. For example, if a family is earning $100,000 a year with a single breadwinner they have a disposable income around $7000-a-year less than if both parents were working for the same combined income.Mr Hockey revealed that a shift worker he met inspired him to publish the information.“I met a cleaner in a building in Sydney and he said, ‘I work really hard, how many people am I supporting with my tax?’. I said, ‘How much do you earn?’ and he said ‘about $70,000’, which is a bit less than average wages. And he works through the night, every night. And he said ‘Why don’t you tell me?’”Mr Hockey said he wasn’t surprised by the figures.“That’s what it is. The Budget papers are about transparency.”