19th May 2014

Page 1

Frankston

Frankston

19 May 2014

Your guide to what’s on this weekend for peninsula families

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Poor bear the brunt of ‘brutal’ budget

Music makers: City Life Frankston teacher Susanne Whitby (left) and student Leena Cambus are on song and getting ready to tackle a Diploma of Music. See page 8. Picture: Gary Sissons

By Stephen Taylor THE most disadvantaged people in our society will be the hardest hit by the federal Budget – the young unemployed, disabled, and single parents, says Emma King, CEO of the Victorian Council of Social Services. “I think young people are being demonised,’’ she told The Times. “The government is hitting our poorest and most vulnerable people – the long-term unemployed and the disabled. ’’They are being hit on so many fronts, such as with university sector fees to be deregulated giving them the green light to charge more, which will further disadvantage young people.’’ Ms King said moving more young people off the Newstart Allowance – which she said was $36 a day – would see more people forced into poverty. “The notion that the so-called Age of Entitlement is over is so much nonsense - as is the notion that somehow the politicians’ pay freeze is going to achieve anything worthwhile.’’ Under the new rules, to start on January 1, applicants for Newstart or the Youth Allowance will have to wait six months before receiving the dole, then work for it for another six months before either getting a job or getting cut off again for another six months. Newstart will be denied to those aged under 24 (a loss of $48 a week on the current arrangement) and move more young people on the disability support pension to Newstart or the Youth Allowance (a cut of $166 a week). On the plus side there are incentives up to $10,000 over three years for employers who hire older workers – especially those who have been unemployed for six months or more. This so-called arning or learning’’ program is expected to save the government $1.2 billion over four years. Ms King was scathing: “For young unemployed to be denied youth support for six months, and to push the disabled off the disability support pension, is outrageous. How are they going to live?’’ She said low-income parents will struggle to provide for young, out-of-work family members – many of them school leavers - who are unable to find work yet cannot access income support for six months of every year. And she is concerned for the many young unemployed who don’t have any parental support.

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“Instead of acknowledging that early intervention and prevention of joblessness gives a real return on investment, and instead of investing in these things, the Budget will entrench disadvantage.’’ Dr Kathy Landvogt, social policy and research unit manager at Good Shepherd Youth & Family Service – which has offices in Frankston, Hastings and Mornington – said the Budget “lacked coherence and fails its own test of securing the nation’s economic health for the future’’. She said the ‘sharing the pain’ adage touted by Treasurer Joe Hockey did not justify “savage cuts in payments to single mums, young people, indigenous Australians, those with disabilities and older people. “Their lives just got even more difficult,’’ she said. “At the other end of the spectrum – and only a temporary measure – people earning $180,000 will contribute 2 per cent toward fixing what is now proving to be a false ‘budget emergency’. “We are not sharing the pain; we are taking from the most vulnerable. This is not balanced.’’ Good Shepherd Youth & Family Service has been helping the poor and disadvantaged on the Peninsula since 1976. It assists around 18,000 each year. Dr Landvogt said the “pain of cuts falls disproportionately on those least able to bear it’’, and describes the cuts to Newstart and the Youth Allowance as “brutal’’. “Not all young people have a family that can support them. Young people in our services are already disadvantaged and struggle to find work. Youth unemployment is higher than in other groups and is increasing. However, investments into the public education, training, and support programs that help them into work are being cut. “They will now be punished for this structural problem by being denied access to income support.’’ Dr Landvogt said single mothers would suffer through losing the Family Tax Benefit when their youngest turns 6 instead of 18 – so losing 12 years of payments. “The compensation payment of $750 per child is hardly an adequate offset,’’ she said. “The well-off, on the other hand, continue to benefit from massive superannuation tax breaks, and the deficit levy does not go nearly far enough to redress this imbalance. Continued page 10

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