Centrelink Penalty Review – It’s About Time.

Catholic Welfare Australia has welcomed the internal review of Centrelink's breaching and penalty regime, announced by the Minister for Community Services, Mr Larry Anthony. However, in view of the inherent difficulties of Centrelink reviewing its own processes, CWA has endorsed the calls of the Australian Council of Social Service for an independent review.

Mr Toby O’Connor, National Director, stated: "Catholic Welfare Australia has long-held concerns about the removal of income support from vulnerable citizens, many of whom already live well below the poverty line while receiving benefits.

"The breaching of clients for failure to meet a range of complex activity and administrative tests increased by 190% over this term of the Howard Government. The practice of over-breaching has pushed the most vulnerable individuals and families further into poverty, while netting the Government around $250 million in ‘savings’ last financial year.

"Escalating breaching rates and the crippling cost of penalties demonstrates a retreat from the Government’s responsibility to protect the poor - with families of recipients and charities left to fill the gap. However, the Church insists that the provision of unemployment benefits is a basic duty of Government, in order to uphold the dignity of its vulnerable citizens:

The obligation to provide unemployment benefits, that is to say, the duty to make suitable grants indispensable for the subsistence of unemployed workers and their families, is a fundamental duty springing from the fundamental order in this sphere, namely the principle of the common use of goods or, to put it in another and still simpler way, the right to life and subsistence. (Laborem exercens (‘On Human Work’) 1981, Pope John Paul II)

Mr O’Connor said, "The growing ranks of the unemployed have been the focus of the Government’s penalties. However, the jobs that are required to reduce the poverty of this group are simply unavailable. With 680,000 job seekers competing for only 90,000 places, penalising those who are already denied the benefits of a real job with fines of up to $1,400 is simply unconscionable.

"The responsibility is on Government to ensure vulnerable Australians have access to income support for as long as they are in need and while jobs and other worthwhile opportunities are unavailable".

Mr O’Connor concluded, "Catholic Welfare Australia calls on the Government to ensure that this Review address the over-breaching practices of Centrelink, and that in future processes for imposing penalties are made with a far higher standard of care and concern for the dignity of those already struggling with severe disadvantages".