Parents Should Support School Leavers; Can’t Be Punished for Working Harder

Responding to the Government’s announcement that parents earning more than $65,000 will be responsible for supporting school leavers, Taxpayers’ Union spokesman James Ross said:

“Breaking the benefit trap is good for young people and good for taxpayers. School leavers who go straight onto a benefit often end up spending decades out of work."

“A bit of common sense in the welfare system is long overdue. Parents who can support their kids should do so, and those who genuinely can’t should still have the state’s backing."

“But setting a hard parental income cutoff at $65,000 risks creating a perverse incentive, where parents very quickly become much worse off for earning only slightly more. Support should be tapered off gradually, so families aren’t punished for working harder.”