Reform of family payments

Low-paid Australian families do not receive adequate financial support to meet the costs of their children, according to this report. The current family payments system has some clear strengths and is relatively effective at addressing child poverty. While Australia’s family payment system is mostly well targeted and are relatively effective in keeping families out of poverty by assisting with the costs of children, ACOSS has proposed key changes that would reduce disadvantage among families earning less than $40,000. Sole parents, families without paid work and raising teenagers struggle to budget for essential items for their children and face greater levels of poverty and disadvantage. Family payments cover less than half of the cost of raising teenagers aged 16 years and older. The paper flags reforms to address the key problems in the family payments system including:• inadequate assistance with the costs of older children;• inadequate support for sole parent families;• the declining real value of family payments;• inadequate support for parents caring for young children at home;• work disincentives; and• inequities and complexities in the child care system