A fairer tax and welfare system

Advocacy is a core value of the St Vincent de Paul Society and our main goal is to change the root causes of poverty. For this reason, the Society’s National Council contracted ANU’s Centre for Social Policy Research to review Australia’s welfare and taxation system to reduce poverty and increase equity.

The most recent report, A Fairer Tax and Welfare System, is now available.

"This report shows that small changes to our taxation system could make a big difference to the welfare of many. One million people could be lifted out of poverty and the superannuation of lower- and middle-income households could be improved”. Mark Gaetani - National President St Vincent de Paul Society.

The report

The report contains four models that are budget-neutral and progressive.

The models help those living in financial stress and poverty – people receiving Job Seeker and working age pension recipients, sole-person households, single parents and renters.

It helps tackle the fact that the lowest 20 per cent of households receive just five per cent of all income.

The model proposes that working age payments, as well as the Disability Support Pension, Family Tax Benefit (Part A) and Commonwealth Rent Assistance be increased.

A Guaranteed Minimum Income is also proposed for all households currently below the poverty line.

The report also highlights the regressive nature of the Goods and Services Tax, particularly for low-income households.

Here’s a snapshot of how a fairer tax and welfare system could reduce inequality and the number of Australians living in poverty and financial stress.