Cut-offs, Knock-ons And Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers

Full text for this resource is not available from the Research Repository.

Gregory, Robert G, 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

Search Google Scholar

Repository staff login