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The main aim of the analyses is to examine the 'churn' of tax and transfer at a micro level, where 'churn' is defined as individuals paying income tax while at the same time also receiving income support payments. The Melbourne Institute Tax and Transfer Simulator (MITTS) is used, based on updated information from the Survey of Income and Housing Costs (SIHC) from 2003/2004.1 The update does not take into account that the composition and size of the population has slightly changed from 2003/2004 to 2008/2009 or any employment changes that may have occurred during this period.