The Australian Welfare State and How to Kick it - 1401 Words

Welfare dependency has increased dramatically since the mid 1960s, with a growing trend of more claimants and fewer payers. Saunders believes the welfare system is revealing serious flaws which are encouraging welfare dependency mainly due to a system which does not encourage self-reliance and work ethic for the majority of recipients. Saunders addresses the issue of poverty amongst welfare dependent households, arguing that current benefits sit above the poverty line and that increased benefits will not necessarily solve poverty, alternatively increasing dependency beyond current levels. He recognises the efficiency and equity implications of the current system, calling for significant and simultaneous reforms to the tax system, labour†¦show more content†¦Lack of work generated income while receiving welfare clearly leads to dependency if the surrounding structural conditions promote this option for the public. High Effective Marginal Tax Rates are one of the structual exp lanations for why people perceive welfare as maximising their options in regard to income and work. Lowering tax is one efficient solution to counter act poverty in welfare dependency. In 2003, 8% of the working population endured EMTRs of 60% or more (Saunders, 2004: 139). Because income support is based off combined family income while taxation is based individually, many part time second income earners see that working is not worth their while (Saunders, 2004: 139). Incentive based welfare reform should mean not punishing those who choose to work (if able) instead of receive benefits on weak claims. Saunders tax reforms suggest that in order for labour to be encouraged the tax system must sit equal with the welfare system in measuring a families income, acknowledging how many people have to be supported by combined income (Saunders, 2004: 143). Other solutions to the effects of high EMTRs are to raise the tax free threshold, replace means tested child payments with flat rate pay ments (Saunders, 2004: 142). Regulatory failures in regard to the labour market hasnt helped Australias Welfare system encourage people into work. High minimum award wages has cut jobShow MoreRelatedAlcohol As A Alcoholic Beverage1362 Words   |  6 Pagesalcohol-related harm. [1] [Minimum Age Limits Worldwide. International Center for Alcohol Policies. Retrieved 2009-09-20.] In Australian society, alcohol has many roles. Many Australians take alcohol mostly for relaxation, enjoyment and for social reasons, and generally they consume alcohol at levels that cause few adverse effects. However, a significant proportion of Australians take alcohol at levels that cause adverse effects. In many countries, Australia inclusive, disease, injury and a considerableRead MoreAlcohol As A Alcoholic Beverage1362 Words   |  6 Pagesalcohol-related harm. 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