Evaluating the Adequacy and Sustainability of Newstart Program

Is it possible to get a new start from the Governments welfare program, Newstart? Is Newstart socially just and adequate and is it sustainable for the taxpayers and the government? To answer these questions, let’s take Brian a 42-year-old unemployed panel beater who has two kids and whether the current Government Welfare scheme can support Brian. Firstly, Newstart is socially just and does adequately support the recipients of the Newstart allowance. 42 Year old Brian’s Budget is very tight in which he only has $23 approx. a week extra on unexpected occurrences. Interest groups showed the overwhelming majority of which expressed the view that the current rate of payment was inadequate and impeded income supports recipient’s ability to meet

His speech was backed by influential newspapers such as The Australian and the Sydney Morning Herald (Scalmer, 2014). Not only is Welfare payments making the recipients believe they are entitled to these supporting benefits, but also that there is a link between social misconduct, increased police activity, the emergency department and welfare payments (Australian Welfare Payments lead to social misconduct, 2013). This includes violence and alcohol and drug abuse. Newstart allowance grants $501 per fortnight as the basic benefit, that’s $36 per day, to live (Klapdor, 2013). Despite this figure being low, it provides an incentive to work as unemployment is a devastating social problem, not just an individual problem (Roach & Saunders, 1991). Hence, the Newstart allowance is socially just and adequate and should not be

Brian, the 42-year-old, unemployed for 18 months receives $452.80 between him and his part-time employed wife Joan. Brian has been unemployed for 18 months, well past the way the government has intended to be a short-term welfare. The Newstart Allowance cost the government $7.5 Billion per year. Former Social Services Minister Kevin Andrews said that the relentless growth with the public’s intentions on raising the Newstart Allowance will be unsustainable (Harrison, n.d.). Although Australian welfare support payments, the recipients are means tested but around 27% of the population are receiving some form of Government support payments (Butterworth, 2015). This is such a large portion of Australians aren’t paying the tax in which the Government needs to continue paying these supporting payments. In 2015-2016, the Government will spend $154 Billion on welfare. This is around 35% of the total government expenditure (Welfare integrity measures, 2015). 35%, there is no way that this is sustainable as if more than one-third of the taxpayers’ dollars are going to those who don’t work, or don’t work enough to support themselves. Centrelink made 436,745 special payments in 2011-12, almost half of these payments (48%) are those receiving unemployment benefits (Peatling, 2012). The Newstart is intended to be a short-term assistance, but studies show that 65% had been on the support benefit for 12