Research reveals growing pains with the Family Tax Benefit in Australia
Essential Insights: Brotherhood of St. Laurence Addresses Family Payments System for a Brighter Future
G’day amazing parents of Australia! Are you ready for some eye-opening news about the Family Tax Benefit (FTB)? Well, keep your reading glasses handy, because the latest report by The Brotherhood of St. Laurence (BSL), in partnership with the University of Melbourne, has just dropped some serious knowledge bombs on us!
Titled Growing Pains, this report has delved deep into our current FTB system, and guess what? It appears we’ve got room for improvement – especially when it comes to supporting low-income families and empowering women for financial security. Who knew that what was introduced in 2000 to give families a boost could now do with a bit of a revamp?
Turns out, the FTB system, despite being a well-intended helping hand for carers and kiddos, is juggling a few too many balls – from complexity to coverage gaps, it’s quite the acrobat! The pinch is felt most by our beloved low-income households, where this benefit is a major contributor to their day-to-day living. And with changes over the past couple of decades, the system seems to be stretching families thin instead of cushioning them from the rough tumbles of life.
Here’s what the Growing Pains report highlights:
- Inadequate FTB payments might leave families with more frowns than smiles. Stalled increases in FTB rates are drying up the well, which we once counted on to keep our little ones from the shadows of hardship.
- A shrinking umbrella of coverage. The report’s got it all charted: a dip from 66% to just 46% of eligible kiddos in two decades – leaving some of our tinier Aussies out in the rain.
- The FTB’s game of musical chairs with gender roles. Women, often the secondary earners at home, are finding themselves in a bit of a twist with a system that’s singing an old tune of economic insecurity.
- Complexity in FTB administration could lead to juggling firesticks! With a tricky path to navigate, families are facing underpayments and dreaded debts, making life a bit more circus-like than anyone bargained for.
- Working more might not always mean earning more. Parents stepping into the working world from home duties are being greeted with high Effective Marginal Tax Rates – that’s a math problem no one wants at the end of the day!
And what’s BSL doing about it? They’re waving the flag for the Federal Government to jump in and straighten out these wrinkles. Aligning FTB with pension increases, revisiting care sharing arrangements, and giving the Maintenance Income Test the boot are part of their action plan.
But why stop there? Broader reforms could include:
- A simpler, per-kid payment to replace the old tiers.
- A benefits system that’s more Robin Hood, less Sheriff of Nottingham – fair for all with universal per-child payments.
- Payment eligibility based on the individual income of the primary carer.
- A test that’s more hug, less squeeze for low incomes, akin to Parental Leave Pay.
Think of it this way – smoothing out these bumps doesn’t just brighten the days for our wonderful women stepping into the workforce, it shines a light on the entire Aussie economy!
Dr. Emily Porter from the BSL team sums it up brilliantly: this is all about valuing the heartwarming care work done at home while giving working families a fair go. It’s about building a strong and secure economic future for all the wonder women out there.
To dive into the nitty-gritty details and see all the groundbreaking info for yourself, check out the full report at the BSL website. Let’s keep the conversation rolling and make some positive waves in the land Down Under!
For more great articles and events see the Parent Newsroom.
Disclaimer
The articles available via our website on news and current events are general information only and are not edited regularly to consider changes or updates. Event organisers are responsible for dates, times and further details, and as such information in these articles may be outdated and subject to change. We strongly urge readers to exercise caution and conduct their own thorough research and fact-checking. The information presented should not be taken as absolute truth, and, to the maximum extent permitted by law, we will not be held liable for any inaccuracies or errors in the content. It is essential for individuals to independently verify and validate the information before making any decisions or taking any actions based on the articles.
Leave a Reply