Australian Poverty Line

Recent reports of 3 million Australians below poverty line (where defined as below 50% of median income) – currently $426.30 per week for a single person – have started some public response. One person commented online that increasing welfare wouldn’t help, as it would drive up the average income and thus leave them still below par – another voter who does not know the difference between mean and median. Depressing that they can vote…

My immediate thought was different: have a major depression, and weaken Unions so more workers join the 32% of below-current- poverty-line whose main income is paid employment. Then the dole will be above that definition of poverty, while the executives stay on salaries giving over the poverty level weekly income per executive hour!

To compare with cost of basic needs: The March 2016 Henderson poverty line for a single person, including housing, is $425.61 for a single not in work, $524.89 for a single in the workforce. (The Henderson poverty lines are based on a benchmark income of $62.70 for the December quarter 1973 established by the Henderson poverty inquiry. The benchmark income was the disposable income required to support the basic needs of a family of two adults and two dependent children. Poverty lines for other types of family are derived from the benchmark using a set of equivalence scales. )

Australia’s Newstart Allowance (single person over 22  unemployment benefit) currently is at best about $335 per week, including rent assistance, and the Government is proposing to cut the Energy Supplement from it – about $8 per week. That is why I keep calling for those on welfare to have the right to surrender 90% of their income for guaranteed, supervised basic living provided by the Government.

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