Government urged to Review Committee Report

Responding to the release of the Report "Working for Australia's future: Increasing Participation in the Workforce", Catholic Welfare Australia called on the Government to address high effective marginal tax rates for the poor and national coordination of strategies to increase workforce participation (including agreed national definitions for employment and workforce participation and better integration across existing employment programs) as its highest priorities.

The Report was released today by the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation.

"The Committee is to be commended for its analysis of the current challenge of increasing workforce participation and for the range of recommendations it has tabled as part of its Report," said Executive Director of Catholic Welfare Australia, Mr Frank Quinlan. "Whilst we do not agree with all the recommendations, there is much in this report that will improve the lot of our most disadvantaged job seekers."

‘While the unemployment rate is now 5.1 per cent, there are still many Australians who are not counted according to the current definitions of unemployment. For instance, according to the ABS, there are around 1 in 8 Australians who are underemployed, and another 789,900 people who want to work but who have given up.' said Mr Quinlan. "Implementation of Recommendation (5) will address these deficiencies in current definitions."

"A review and overhaul of the taxation system is long overdue. We welcome the Committee's Recommendation (4) suggesting a review of the tax free threshold, effective marginal tax rates and income test stacking with a view to maximising incentives from income support to increased participation in the workforce," he said.

"Catholic Welfare Australia also welcomes the Committee's Recommendations (6, 7 & 8) exploring potential improvements to increasing workforce participation by better integrating programs from a range of portfolios. National coordination of employment strategies, tying together projects between Commonwealth, State/Territory, Local Governments and other business, union and community organisations, is also long overdue," said Mr Quinlan.

"We remain concerned that more jobs must be created if workforce participation is to be increased significantly. The required job growth cannot be achieved at the cost of lower wages and increased casual and part-time work for low paid workers in particular. ," he concluded.

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