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Labor must decisively reject austerity in its policy outlook : Comments
By Tristan Ewins, published 18/2/2016The 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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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.
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