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The Forum > Article Comments > Labor must decisively reject austerity in its policy outlook > Comments

Labor must decisively reject austerity in its policy outlook : Comments

By Tristan Ewins, published 18/2/2016

The announcements on negative gearing and capital gains tax concessions will save tens of billions over the course of a decade, and will go some way towards redressing the Federal deficit.

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A further report of Welfare Rorts – Daily Telegraph 2/3/

I quote – “Some of Australia’s worst welfare cheats have illegally racked up individual debts of up to $400,000 each.

In one of the most bizarre cases, The Daily Telegraph can reveal that a 71-year-old woman defrauded taxpayers of $383,359 by claiming the widow’s allowance under multiple fake identities. Her whereabouts are listed as “unknown”.

In a similar case, an 87-year-old man had been claiming the age pension for 24 years under a number of fake identities and defrauding the Commonwealth of $301,863.

And a 93-year-old was able to claim $254,376 in pension payments over 20 years by hiding assets.

These are just some of the estimated 270,000 cheats and fraudsters refusing to pay back an $870 million welfare debt bomb that has been 30 years in the making.

But changes to the Social Services Act to be introduced into Parliament today will mean they can no longer hide, with the retrospective removal of the six-year loophole under the Statute of Limitations which had enabled many to escape having to ever pay back their debts.

For the first time interest will be now also be charged on the outstanding debts at a rate of 9 per cent.

And targeted social welfare cheats who refuse to pay back their debt will also be slapped with a departure prohibition order to prevent them leaving the country.

The overall welfare overpayment debt, which also includes people who are on payment plans and are attempting to pay it back, has blown out by 10 per cent in just the past year to total $3 billion.

Social Services Minister Christian Porter said the debt had been allowed to accumulate under previous governments with little effort taken to recover it.

“The situation is that 1 per cent of Australia’s population has received money they are not entitled to and owe a debt to the other 99 per cent of Australians – a debt that in too many instances they are making no effort to pay back,” he said.
cont'd
Posted by SAINTS, Friday, 4 March 2016 12:41:06 PM
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cont'd

The number of debts, the size of debt and the duration of outstanding debts is cause for serious concern.

If people have received social security, family assistance, paid parental leave or student payments that they are not entitled to, then leave the welfare system and become employed, their debts should be recovered wherever reasonable and possible.

“It is disturbing that individuals have in some cases cheated taxpayers us, of hundreds of thousands of dollars – and under the previous Labor government nowhere near enough was being done to recover the debt. This tolerance must end.”” (End of Article)

Another case of welfare bludgers giving the “proverbial finger” to all taxpayers and Government. Self respect - Nah - nothing to see here!

Tristan – you’ve called me “callous” and “unchristian” in a previous post and my lifestyle reflects a “it’ll be alright mate” attitude. With respect Tristan it’s the above 270,000 welfare cheats with this lifestyle not those honest workers and taxpayers whose tax dollars are paying for above rorts on the welfare system with their “it’ll be all right mate” attitude. However, your analysis of my character - made me smile.

If a manufacturing industry closes - the Government is blamed, those workers won’t be able to find another job, it is said! Newsflash - closures also occur within the blue collar industry. Are there those out there that have had to change their career paths – of course! When one door closes in life we work (learn) to open another. One usually commences to improve one’s skills/marketing ability. People have been re-training, re-educating in different skills for generations, nothing new!

Time for those 270,000 welfare cheats to get off the system and – work, yep that’s right – shock, horror – work.
cont'd
Posted by SAINTS, Friday, 4 March 2016 12:53:29 PM
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Cont'd

If Labor are “serious” they would support the Social Services Bill in the Senate to “close” the loophole against welfare rorters. If not – it will speak “volumes” to us as contributing workers and taxpayers who want to see Australia continue to grow and prosper.

Again, I repeat, the welfare system is the for the “needy” in society – not the “greedy” 270,000 who “callously” rort the welfare system.

If those out there have no concerns as to the extent of the rorts being committed on the Welfare system – then we have a serious problem growing within our society.

These articles show the extent of rorts within the Welfare system alone - so how about the rorts occurring in other areas, where loopholes must also be closed?

Note – I am a swinging voter and have no alliance to any party – I just tell it as I see it.
Posted by SAINTS, Friday, 4 March 2016 1:00:01 PM
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SAINTS, I've been away from this thread for a while but I seed Tristian still has his labor rose coloured glasses on.

I have run my own business for the best part of 25 years, and I have a small business now and wages, especially the add on conditions are killing small business, no doubt big business as well but most of them are able to pass the costs on.

Back in 89 when I started, wages for SB were about 12% of turnover, whereas now they are more like 22%.

As for welfare cheats, they are everywhere and one of the largest problems we have is the fact that welfare, despite the overwhelming evidence of waste and mismanagement, is still paid in cold hard cash.

A simple restricted debit card whereby restricted goods cannot be purchased by such a means would remove much of the waste.

We have situations where several dole bludgers, and that's what they are, bludgers, shack up in one house paying their $350 per week and living very well, especially if they deal in drugs as well.

The other lurk is where a couple, with two kids claim to be separated but living under the same roof. Each has custody of one child and both get single parent benefits.

The truth is governments know whats going on but they are too gutless to do much about it and if they try our ridiculous senate blocks their move, that's provided it gets past the labor/green alliance.

There is no end of frustration creeping in and it appears we the tax payer are powerless to do anything about it because even if you do vote for those who you think will fight for your values, the other side blocks it.

I doubt we will ever see a return to the Howard days of a booming economy and no debt.
Posted by rehctub, Saturday, 5 March 2016 5:40:48 AM
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SAINTS see the following:

"So far there’s not much evidence welfare fraud is out of control. Between 2006 and 2010, Centrelink conducted an average of 4 million compliance reviews each year, which covered 60% of its “customers”. The yield of cases referred for prosecution was on average 0.04%, or 3192 people. In 2012, fewer than 1500 people were referred for welfare fraud." see: https://www.themonthly.com.au/issue/2014/november/1414760400/richard-cooke/much-obliged

The rest of the article is worth reading too.

also see from the same source:

"According to a Tax Justice Network report, a third of ASX200 companies pay less than 10% tax, while 57% operate subsidiaries in tax havens. Not only does Australia miss out on an estimated $8 billion in annual revenue because of these fudges, but many of those taking the most tight-fisted approach are only too happy to unclench a palm when a government handout is available."
Posted by Tristan Ewins, Saturday, 5 March 2016 8:15:50 AM
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Also If you want more pensioners to take up work - even if they're only capable of working a little its better to get rid of poverty traps. And if you think this is unfair for those on low incomes - change the relativities by raising the minimum wage, extending low-income benefits and restructuring tax.

And if you want to complain at the outright wealthy paying more tax just remember they're being paid many times more for the same amount of work ; eg: perhaps $10 million a year for a corporate executive compared with about $70,000 for some teachers.
Posted by Tristan Ewins, Saturday, 5 March 2016 8:20:44 AM
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