Is earnings credit the best way to cut the dole queues?

Kayoko Tsumori argues that 'earnings credit', proposed by the 'Five Economists' in 1998 will not sufficiently decrease joblessness in Australia, and may in fact encourage welfare dependency. The earnings credit, though disguised as a tax credit, is just another form of welfare benefit. She suggests that raising the tax free threshold is a far more effective means of tackling joblessness. It would encourage personal initiative, increase labour force participation and discourage welfare dependency.