Two-class welfare disaster - Tim Colebatch - Opinion - theage.com.au

"The key fact behind welfare change is that our system splits beneficiaries into two groups. One is those deemed deserving poor, such as those on the aged pension, disability support, and sole parents. The other is the undeserving poor: the unemployed on the Newstart allowance."

Comment

This is the opposite effect to what the Government says will happen. My opinion is that the 15 hour threshold acts as a distinct disincentive for people as they attempt to recover or improve their functional capacity. As you approach the threshold, instead of simply "pressing on" a huge issue becomes - "Is it worth me trying any harder. If I work one more hour per week, I will be a lot worse off."

That's why I believe that all benefits should be equal and income tested, with a slow, smooth dropoff in benefits as earnings increase.