Child support scheme -
*High unemployment contributes to hidden costs of
$3,700 million p.a.
*Children's weekly support payments decrease!
An independent report
(read report) confirms the child support scheme is financially,
a national disaster and the hidden costs to the tax payer far outweigh any
benefits claimed by the Child Support Agency.
Unemployment levels amongst payers, who are mostly fathers, have reached
39 per cent, representing 76 per cent of all unemployed males 20 years and
over. (ABS statistics)
The average weekly amount paid to a child has reduced from $48.64 ($35.35
CPI index from 1990) under the previous system of court order to just $26.50
under CSA.
Direct costs of the scheme, including support for CSA unemployed liable parents
has now reached $1,740 million per annum according to the report. Only $380.4
million pa is recovered by Centrelink as a result of the claw back based
on the amount of support parents pay. For every dollar collected it costs
the Australian taxpayer $2.80.
Men's Rights Agency co-founder Sue Price said, "The scheme has failed on
all counts to fulfil its primary objectives as specified by the government
in 1986. It was supposed to ensure that work incentives were 'not impaired'
and 'adequate support' would be available for children not living with both
parents. Those parents would share the support costs according to their 'capacity
to pay', not according to the oft used CSA determination of "capacity to
earn". The not so subtle changes away from parliament's original intentions
have resulted in fathers being forced to pay on the basis of income levels
they are just not earning. Finally, the cost to the Commonwealth (taxpayer)
was to be limited to the minimum necessary to ensure the needs of the children
are met.
"Many fathers lose their jobs when going though family breakdown and cannot
recover their position in the workforce. Others faced with the stress of
mounting debt, caused by unrealistically high demands of child support are
unable to keep their job or are forced into unemployment as the only alternative
for their survival." Men experiencing relationship breakdown, many of whom
are involved with the CSA, are suiciding at the rate of 3 - 4 a day. If this
was a case of women committing suicide at these levels there would be a national
outcry. Yet, CSA even refuses to supply the number of payers who exit the
system due to suicide! Ironically, they classify a change of this kind as
a 'terminating event!
"It is not a matter of fathers not wanting to support their children. The
problem, especially for low income families, is being unable to support them
whilst maintaining a minimal standard of support for themselves.
"The solution is not to invent more ways to punish liable parents for non
payment when it is really a case of them being dead broke not deadbeat, but
to provide a system that is based on both parents sharing the actual cost
of caring for a child. The current system, based on a percentage ranging
from 18% for one child to 36% for five or more children applied to gross
income less a self support amount, is badly flawed. It is absolutely illogical
to apply that percentage to all income levels. The higher the income the
less the percentage expenditure becomes for any one item.
"Separation is not necessarily the reason why some single parent headed families
live in poverty, as is frequently claimed. Many of these families were living
in poverty prior to separation. There should be no presupposition that separation
will alleviate that poverty, though increased special benefits to single
parents and their children often mean they lose little in money and gain
by not having another adult to feed and clothe."
Author of the report, Managing Director of PIR Research Richard Cruickshank
said, "We could not believe the extent to which the CSA, Centrelink and even
the ATO went to in an attempt to foil meaningful independent research. Most
of the community, including politicians, know very well there is a war of
attrition going on out there between separated parents, but they may be unaware
how badly the CSA is mismanaging the process. The problem is the Liberal
Government has its head in the sand, because trying to fix Child Support
equitably may make them unpopular with vocal minority groups with vested
interests. In the end result they will be forced to fix it, because taxpayers
will revolt when they find out the 'real' hidden cost.
"PIR conservatively forecasts that the cost of the scheme in its present
form will continue to spiral, costing a further $55 billion over the next
10 years, which is about $5000 for to be borne by every hard working Australian
taxpayer. END
The above press release was sent to all major metropolitan newspapers and
main radio stations in Sydney, Melbourne and Brisbane. All have chosen to
ignore the issue apart from the Canberra Times who ran a very small article.
The "lace curtain" has certainly been lowered on this story. Any information
that challenges the existence of the CSA is off the agenda.
national financial disaster says Report