Cut-offs, Knock-ons And Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers
Gregory, Robert, Klug, Eva and Thapa, Prem J (2008) Cut-offs, Knock-ons And Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers. The Economic Record, 84 (266). pp. 291-309. ISSN 0013-0249
Abstract
High welfare withdrawal rates generate high effective marginal tax rates and work disincentives; but reducing withdrawal rates extends welfare to the better-off. We analyse pension taper reduction effects for lone mothers subject to the Australian tax and welfare reforms of July 2000. The changes in work incentives were trivial. Taper reductions extended income support and provided larger family payments to high income lone mothers previously excluded from welfare. Approximately 90 per cent of the better-off group now made eligible for income support had a long history of welfare reliance. The taper reduction encouraged them to stay on welfare longer.
Dimensions Badge
Altmetric Badge
Item type | Article |
URI | https://vuir.vu.edu.au/id/eprint/3684 |
DOI | 10.1111/j.1475-4932.2008.00492.x |
Official URL | http://onlinelibrary.wiley.com/doi/10.1111/j.1475-... |
Subjects | Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES) Historical > FOR Classification > 1402 Applied Economics Historical > SEO Classification > 9199 Other Economic Framework |
Keywords | ResPubID18409, welfare withdrawal, marginal tax, work disincentives, pension taper reduction, lone mothers, Australian tax and welfare reforms - July 2000, income support, family payments, welfare reliance |
Citations in Scopus | 3 - View on Scopus |
Download/View statistics | View download statistics for this item |