Income Support

Since 2006 and the undertaking of Welfare to Work, massive changes affecting the income support of single parents have occurred. Many single parents are eligible to receive some kind of income support from Centrelink. The two most common payments being Parenting Payment (single) and Newstart Allowance.

Parenting Payment (single): From 1 July 2006 Parenting Payment (single) is an income support payment to a single parent who is the principal carer of a child or children under the age of eight. Parents on Parenting Payment (single) before 1 July 2006 will continue to receive this payment until their youngest child turns 16 providing they continue to meet eligibility requirements. More information regarding eligibility criteria and payment rates available here.

Newstart Allowance: From 1 July 2006 a single parent who is the principal carer of a child or children over the age of 8 are eligible for Newstart Allowance. Recipients of Newstart Allowance are expected to participate in activities that will increase the opportunity to find paid employment. For most single parents, this means they are expected to work or look for work for at least 15 hours per week. More information regarding eligibility criteria and payment rates available here.

Single parents may also be entitled to Family Tax Benefit A and Family Tax Benefit B as well as a handful of other payments. More information regarding payments, eligibility criteria and rates available here.

Welfare to Work: “The 1 July 2006 Welfare to Work changes represent the most significant downgrading of income support in the Social Security system since the Social Security Act was introduced in 1947. The core of the new system involves cuts in payments, increased obligations on parents and people with disabilities, a harsh penalty regime, and the removal of important protections and safeguards in the previous Act. This represents a fundamental shift in that many rights, entitlements, obligations and responsibilities that were previously spelled out in legislation, will now be based on policy developed by faceless bureaucrats. Such policy is developed without the scrutiny of Parliament and may be changed at any time. Many of the changes are unbalanced, go too far and are likely to have unintended consequences that will cause significant hardship rather than providing much needed assistance to tens of thousands of Australians.” (Taken from Welfare to Work or Unworkable Welfare – National Association of Community Legal Centres. Complete text here)

What this has meant for single parents is that those whose youngest child is over eight and who claims payment after 1 July 2006 will be put onto Newstart Allowance rather than Parenting Payment, resulting in a $38 a week lower payment — $243 per week instead of $281 per week. The payment for parents who study fulltime is $49 a week less than had they been on Parenting Payment. It is estimated that 77,000 parents will go onto lower payments by 2009. (Figures correct September 2008 – see Centrelink website for most accurate figures.)

More information and analysis regarding Welfare to Work can be found under Research and Publications.