Essay On Poverty In Australia

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Key problems and issues identified

The submission from the SVdPS raises several key issues in regards to the adequacy of the allowance payment system. The submission noted that the current rate for single persons is now less than half of the full-time minimum wage (SVdPS, 2012) and argues that it makes it harder for people to find employment as it locks recipients in to a more permanent form of poverty. The cost of living increases as public transport costs more, and is sparser and less frequent in areas that rent is lower, credit and loan repayments cost more, and recipients have to pay more for basic services (ACOSS, 2012). Moreover, SVdPS state that poverty lines set by the Melbourne Institute of Applied Economic and Social Research, place recipients of the Newstart Allowance as living below poverty line and with the assistance of extra benefits, it only places recipients marginally above the poverty line (SVdPS, 2012).

Material deprivation seeks to measure living standards directly, drawing on what households lack what are usually accepted as ‘essentials’. The submission draws on key information on the Consumer Price Index as a national average, but despite this average, recipients of Newstart are greatly disadvantaged. According to the submission, goods and …show more content…

Upon finding employment, recipients would not retain their health care and pensioner concession cards, and could face the gap between termination of employment and the recommencement of income support payments (SVdPS, 2012). SVDpS question Centrelink’s reporting requirements, as it is believed that they do not meet the current labour market as it is unsuited to non-standard forms of work (SVdPS,

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