The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities

Ann Harding, Quoc Vu, Richard Percival

    Research output: Contribution to conference (non-published works)Paper

    Abstract

    In the May 2005 Budget the Federal Government announced a range of proposed welfare to work measures, to take effect from 1 July 2006. Among the numerous measures announced in the Budget were significant changes for sole parents - including that those sole parents claiming income support after 1 July 2006 with a youngest child aged 6 years or more will be placed on Newstart Allowance, rather than Parenting Payment Single. This paper analyses the impact of the proposed changes upon the disposable incomes and effective marginal tax rates of sole parents. It shows that the disposable incomes of sole parents can be up to about $100 a week lower under the proposed new system than under the current system. It also finds that effective marginal tax rates will be sharply increased under the proposed new system, over a reasonably wide range of earned income.
    Original languageEnglish
    Pages1-25
    Number of pages25
    Publication statusPublished - 2005
    Event34th Conference of Economists - Melbourne, Australia
    Duration: 28 Sep 2005 → …

    Conference

    Conference34th Conference of Economists
    CountryAustralia
    CityMelbourne
    Period28/09/05 → …

    Fingerprint

    parents
    welfare
    disability
    disposable income
    reform
    taxes
    budget
    earned income
    Federal Government
    income

    Cite this

    Harding, A., Vu, Q., & Percival, R. (2005). The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities. 1-25. Paper presented at 34th Conference of Economists, Melbourne, Australia.
    Harding, Ann ; Vu, Quoc ; Percival, Richard. / The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities. Paper presented at 34th Conference of Economists, Melbourne, Australia.25 p.
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    abstract = "In the May 2005 Budget the Federal Government announced a range of proposed welfare to work measures, to take effect from 1 July 2006. Among the numerous measures announced in the Budget were significant changes for sole parents - including that those sole parents claiming income support after 1 July 2006 with a youngest child aged 6 years or more will be placed on Newstart Allowance, rather than Parenting Payment Single. This paper analyses the impact of the proposed changes upon the disposable incomes and effective marginal tax rates of sole parents. It shows that the disposable incomes of sole parents can be up to about $100 a week lower under the proposed new system than under the current system. It also finds that effective marginal tax rates will be sharply increased under the proposed new system, over a reasonably wide range of earned income.",
    author = "Ann Harding and Quoc Vu and Richard Percival",
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    Harding, A, Vu, Q & Percival, R 2005, 'The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities' Paper presented at 34th Conference of Economists, Melbourne, Australia, 28/09/05, pp. 1-25.

    The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities. / Harding, Ann; Vu, Quoc; Percival, Richard.

    2005. 1-25 Paper presented at 34th Conference of Economists, Melbourne, Australia.

    Research output: Contribution to conference (non-published works)Paper

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    AU - Vu, Quoc

    AU - Percival, Richard

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    AB - In the May 2005 Budget the Federal Government announced a range of proposed welfare to work measures, to take effect from 1 July 2006. Among the numerous measures announced in the Budget were significant changes for sole parents - including that those sole parents claiming income support after 1 July 2006 with a youngest child aged 6 years or more will be placed on Newstart Allowance, rather than Parenting Payment Single. This paper analyses the impact of the proposed changes upon the disposable incomes and effective marginal tax rates of sole parents. It shows that the disposable incomes of sole parents can be up to about $100 a week lower under the proposed new system than under the current system. It also finds that effective marginal tax rates will be sharply increased under the proposed new system, over a reasonably wide range of earned income.

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    Harding A, Vu Q, Percival R. The Distributional Impact of the Proposed Welfare-to-Work Reforms upon Sole Parents and People with Disabilities. 2005. Paper presented at 34th Conference of Economists, Melbourne, Australia.