Labor's Tax Policy goes some way to addressing structural poverty in this country

Catholic Welfare Australia welcomes the renewed attention being given to the poor and disadvantaged in our community in this Election campaign. Our current level of economic prosperity puts this nation in a unique position to provide much needed assistance and support to those most in need.

“Catholic Welfare Australia is encouraged by initiatives in the Labor Party’s Tax policy that will assist jobless families to return to work without penalising their eligibility for the Family Tax Benefit,” said Chair of Catholic Welfare Australia, Father Joe Caddy. “This policy needs to assessed in the light of other welfare payments which may have a bearing on the Effective Marginal Tax Rates which play their own part in creating disincentive for people to return to the workforce.”

The Better Family System designed to avoid debt traps, simplify means testing and deliver benefits through fortnightly cash assistance payments is a much needed improvement on the way in which Family Tax Benefit is currently delivered.

“The proposed Working Tax Bonus for people earning under $52,000 will undoubtedly be a welcome relief,” he said. “The fact that it is a targeted tax cut is a positive measure.”

“We acknowledge that there is a proposed injection of funding aimed at extending programs such as Jobs Education Training (JET), childcare gap fee relief, numeracy and literacy training and access to TAFE training places through the Families in Work component of the package,” said Fr Caddy. “This part of the package is a welcome initiative as it goes some way to addressing issues of structural poverty. It will be important to ensure that any proposed programs provide the required help to the people who need it, where they need it.”

“This package will be welcomed by many low-income families however we remain concerned that some of those most in need – like sole parent families with young children – may require additional targeted assistance to ensure they do not end up worse off under this proposal than they currently are,” said Fr Caddy.

For more information please call: Jackie Brady, Communications Officer, 0417 220 779