Department of Human Services  -  Newstart payment  v  Maximum Aged Pension

Single parents revert from the Parenting Payment Single (PPS) $776 p/f ($388 p/w) to Newstart $601.10 p/f  ($300.55 p/w) when their youngest child turns 6 - a reduction of 22.5% or $87.45 p/w.

Below are extracts from It’s not just Newstart. Single parents are $271 per fortnight worse off. Labor needs an overarching welfare review - The Conversation  -  Dec 3, 2018 that explain the material reduction in assistance for single parents after their youngest child turns 6, doubtless to enthuse single parents to seek part-time work as explained in For single parents, it pays to work - The Conversation  -  Nov 7, 2016:

"In 2006 the Howard government made substantial changes to the Parenting Payment Single (PPS) and the Parenting Payment – Partnered (PPP) as part of what it called a welfare to work program.

Single parents claiming the PPS after July 1, 2006 would lose it when their youngest child turned eight. They would go onto the much lower Newstart unemployment benefit, and be expected to look for work.

Partnered parents claiming the PPP would lose it when their youngest child turned six, but for them it made little difference because their parenting payment and Newstart were about the same.

For single parents it meant a significant cut in benefits at the time, and a harsher income test.

Those receiving PPS before July 1, 2006 were “grandfathered” meaning they could continue to receive it until their youngest child turned 16.

But in 2013, the Gillard government removed grandfathering, requiring all single parents with older children to be moved onto Newstart or other payments if eligible.

At that time the maximum rate of Parenting Payment Single was $331.85 per week. The maximum rate of Newstart was $266.50.

And a change introduced by Prime Minister Kevin Rudd made the parenting payments themselves less generous.

For many decades, the basic rate of payment for most single parents was the same as the pension.

In 2009 the Rudd government delinked them and lowered the wages benchmark so that PPS was set at 25% of male total average weekly earnings instead of 27.7%.

The 2009-10 Budget also changed the link between levels of the maximum rate of Family Tax Benefit Part A and the married rate of pension, a link originally established following the Hawke government’s child poverty pledge.

These changes have shrunk Family Tax Benefit payments per child from 16.6% – 21.6% of the married pension rate to 14.5% – 18.9%, a difference now of $13 per week for each younger child and $17 per week for each older child – with more shrinkage to come.

In 2014 the first Abbott budget attempted to further wind back Family Tax Benefits.

After a tough time in the Senate, several of his measures finally passed, under Prime Minister Malcolm Turnbull in 2016 and 2017.

Family Tax Benefit B has been closed to couple families with children aged 13 years or older and the Family Tax Benefit B income test tightened, the size of the payments to large families has been wound back, the Family Tax benefit A end of year supplement has been withdrawn from families earning over A$80,000 per annum and rates have pay have been temporarily frozen, so that they don’t even increase with inflation."

Australian Government Department of Human Services - Newstart - How much you can get:  Single, with a dependent child or children - $601.10 p/f  ($300.55 p/w)

Newstart  - If you’re Your maximum fortnightly payment is
Single, no children $555.70
Single, with a dependent child or children $601.10
Single, aged 60 or over, after 9 continuous months on payment $601.10
Partnered $501.70 each

Single principal carer granted an exemption from commitments for any of the following:

  • foster caring
  • non-parent relative caring under a court order
  • home schooling
  • distance education
  • large family
$776.10

Australian Government Department of Human Services  -  Old Age Pension - Maximum payment rates:  Single - $926.20 p/f  ($463.10 p/w)

Per fortnight Single Couple each Couple combined
Maximum basic rate $843.60 $635.90 $1,271.80
Maximum Pension Supplement $68.50 $51.60 $103.20
Energy Supplement    $14.10    $10.60      $21.20
Total $926.20 $698.10 $1,396.20

If you’re

Your maximum fortnightly
payment is

Single, no children

$555.70

p/f

p/w

Single, with a dependent child or children

$601.10

$601.10

$300.55

64.90%

of old age pension

Single, aged 60 or over, after 9 continuous months on payment

$601.10

Partnered

$501.70 each

Single principal carer granted an exemption from commitments for any of the following:

$776.10

foster caring

non-parent relative caring under a court order

home schooling

distance education

large family

Per fortnight

Single

Couple each

Couple combined

Couple apart due to ill health

Maximum basic rate

$843.60

$635.90

$1,271.80

$843.60

Maximum Pension Supplement

$68.50

$51.60

$103.20

$68.50

Energy Supplement

$14.10

$10.60

$21.20

$14.10

Total

$926.20

$698.10

$1,396.20

$926.20

$926.20

$463.10

85%

$393.64

$325.10

Variance

Excel calculations

 

 

[bottom.htm]