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| Out of the maze: a better social security system for people of working age |
Image: kokeshi / Flickr29 April 2010This report proposes major reform of the system of social security payments for people of working age (18 to 64 years), including Newstart Allowance, Disability Support Pension and Parenting Payment.
Instead of applying more band aids to a broken system, the report proposes that we go back to first principles and rebuild it from the ground up. Payment levels would be based on need and rather than the likelihood of employment, so the distinction between pension and allowance payments would be removed. Instead, income support payments would be set at an ‘Australian Minimum Standard of Living’: the minimum level of income a person needs to cover their basic expenses and live decently. In addition, supplements would be paid to assist people with special costs including the costs of disability and caring, and housing rents. Income support recipients would be encouraged to search for work and to train through job search and training supplements that help with the costs of doing so.