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The distributional impact of the proposed welfare-to-work reforms upon sole parents

Authors
Keywords
  • Reformation
  • Parenting
Disciplines
  • Economics
  • Political Science

Abstract

In the May 2005 budget the federal government announced a range of proposed welfare to work measures, including the plan to shift sole parents with a youngest child aged six years or more onto the Newstart Allowance. This report shows that the disposable incomes of sole parents could be up to about $100 a week lower under the proposed new system. It also finds that effective marginal tax rates will be sharply increased under the proposed new system, over a reasonably wide range of earned income.

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