Safety net frays. Opinion

OUR honourable Prime Minister has expressed that the Government aims to maintain a “generous” safety income net.

However, with a 50% increase in the GST and the Treasurer intent on reducing social service spending, the social safety net is at risk of becoming the worst in the OECD.

The Australian Government social spending is rated only 23rd from 28 OECD countries, with social spending only 19 per cent of GDP, while the best OECD spending is more than 31 per cent of GDP.

Regardless of provision of an arbitrary compensation for a GST increase of nearly 5 per cent on everything, in association with reduced social service spending, the lowest incomes groups will have a reduced safety net.

More people will be forced from disability income to unemployment income.