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Where did the wage subsidy money really go?

Where did the wage subsidy money really go?
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Working For Families review: ACT keen for scheme to be scrapped, while Greens push for expansion

Its interaction with the wider welfare benefit system is complex, and some complain its abatement rates unfairly penalise poorer people for working more. There have also been calls to greatly expand it – the Government s Welfare Expert Advisory Group suggested it should be given to couples without children. Social Development Minister Carmel Sepuloni said the Cabinet agreed to the review in 2019 but “a lot happened in 2020” that stopped it going forward then. She was not willing to commit to the new review starting within 2021 or to speak at length about the terms of reference. BRADEN FASTIER Revenue Minister David Parker said he doubted that root-and-branch reform was needed.

Working for Families needs major changes, experts say

The multibillion-dollar Working For Families scheme, established in 2004, supports about 350,000 low- and middle-income families with payments and tax credits. But it is often criticised, particularly because of the abatement rates that some say are a disincentive to people on lower incomes to take on more work. These “claw back” support payments as families start to earn more. But critics say the rate at which the money is taken away is too high, and starts too early. Tax consultant Terry Baucher said the tax system and social welfare systems combined to create undesirable outcomes. “That’s not a lot of money, as family income, that seems pretty low,” he said.

Revealed: Government to review multi-billion dollar Working For Families scheme

Revealed: Government to review multi-billion dollar Working For Families scheme
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