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Aussies on parental welfare paid more than nurses, teachers: data

Xinhua, October 28, 2016 Adjust font size:

Australians taking advantage of parental welfare payments are better off financially than some in the workforce, local media revealed on Friday.

Australian government data showed that more than 43,000 Australians not working and on parental welfare were given more than 35,000 U.S. dollars in 2014-15.

Social Services Minister Christian Porter, who last month announced sweeping changes to the nation's welfare system, said the current plan was a deterrent for parents wishing to get back to work, as those on welfare were currently better off than many nurses, teachers and other professionals.

"Among the many areas that require attention to system design is the fact that the broad generosity of the Australian welfare system manifests more often than people might expect in circumstances where the money people receive in welfare payments is comparable to being employed," Porter told News Corp on Friday.

"What is not in any recipients' best interest is to be deprived of the incentives to reduce income from welfare with income from work."

According to News Corp, a single parent with four kids (who does not work) could receive more than 38,000 tax-free U.S. dollars per year in welfare payment from the government - the after-tax equivalent of someone working to earn 50,000 U.S. dollars per year, such as a full-time teacher, paramedic or nurse.

Porter said the government must come up with "better ways" to encourage parents to break out of the welfare cycle which is currently better value than finding some full-time work.

"It is morally incumbent upon us in that in developing policy... and in making the welfare system fairer we look at mutual obligation and the requirement to prepare for, search for and accept work," Porter said.

"We need to find better ways to ensure parents retain current, work-ready skills or develop them even when receiving welfare so they are prepared for and able to accept work when it becomes appropriate for them to do so." Endit