AU: Child support drives dads to dole: study

Child support drives dads to dole: study
September 22, 2004 - 8:14PM

Australia's Child Support Agency is grossly mismanaged and driving dads onto
the dole queue, according to a new report.

The PIR Independent Research group report found many dads were opting out of
the workforce because they faced the prospect of losing up to 62 per cent of
their after-tax wages in child support payments.

As a result, the CSA system had driven up the unemployment rate for
separated fathers to more than six times the national average, it said.

More than 70 per cent (221,375) of all unemployed men aged over 20 in
Australia now pay child support.

With more separated dads on welfare, children now received less money than
before the CSA was set up in 1988 - just over $48 a week then to about $36 a
week now.

"PIR Independent Research has reached the conclusion that the child support
scheme is the primary driver of unemployment in Australia," it said.

"On top of high income tax rates cutting in at low levels, separated fathers
can be left with less than 20 cents in the dollar.

"This provides strong disincentives to work."

The report estimated that more than 1.26 million parents were wrapped up in
the CSA system, with over $1.9 billion being paid in child support.

PIR head Richard Cruickshank said the company decided to compile the report,
despite a lack of cooperation from CSA, to help all taxpayers realise the
enormous problems and costs with the system.

Many children were now only receiving about $5 a week, the maximum parents
paying child support have to hand over if they are unemployed.

The other major impact, he said, was that the government was paying out
about $180 a week in welfare payments to unemployed parents paying child
support instead of reaping the taxes they would have paid had they remained
in the workforce.

The report said the formulas used by the CSA to calculate child support
payments had serious flaws and accused the CSA of being grossly mismanaged.

Mr Cruickshank suggested both parents be forced to pay half the cost of
raising their children.

"I think most fathers would like to pay for their children," Mr Cruickshank
told AAP.

"But this is an escalating formula (used to calculate payments), it was
never designed to be that way, it was designed to help needy children.

"But when what you earn increases, so does the amount you pay (in child
support)."

The report found the cost of running the CSA, the increased welfare and lost
productivity blew out to $5 billion in the 2002/03 financial year and
forecast it would cost another $66 million over the next decade.

The government recently announced a child support taskforce to examine the
CSA system. It is due to report in March.

Y'know,...I might pay *some* attention to this kinda **** if you added some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?


"Dusty" wrote in message
...
Child support drives dads to dole: study
September 22, 2004 - 8:14PM

Australia's Child Support Agency is grossly mismanaged and driving dads
onto
the dole queue, according to a new report.

The PIR Independent Research group report found many dads were opting out
of
the workforce because they faced the prospect of losing up to 62 per cent
of
their after-tax wages in child support payments.

As a result, the CSA system had driven up the unemployment rate for
separated fathers to more than six times the national average, it said.

More than 70 per cent (221,375) of all unemployed men aged over 20 in
Australia now pay child support.

With more separated dads on welfare, children now received less money than
before the CSA was set up in 1988 - just over $48 a week then to about $36
a
week now.

"PIR Independent Research has reached the conclusion that the child
support
scheme is the primary driver of unemployment in Australia," it said.

"On top of high income tax rates cutting in at low levels, separated
fathers
can be left with less than 20 cents in the dollar.

"This provides strong disincentives to work."

The report estimated that more than 1.26 million parents were wrapped up
in
the CSA system, with over $1.9 billion being paid in child support.

PIR head Richard Cruickshank said the company decided to compile the
report,
despite a lack of cooperation from CSA, to help all taxpayers realise the
enormous problems and costs with the system.

Many children were now only receiving about $5 a week, the maximum parents
paying child support have to hand over if they are unemployed.

The other major impact, he said, was that the government was paying out
about $180 a week in welfare payments to unemployed parents paying child
support instead of reaping the taxes they would have paid had they
remained
in the workforce.

The report said the formulas used by the CSA to calculate child support
payments had serious flaws and accused the CSA of being grossly
mismanaged.

Mr Cruickshank suggested both parents be forced to pay half the cost of
raising their children.

"I think most fathers would like to pay for their children," Mr
Cruickshank
told AAP.

"But this is an escalating formula (used to calculate payments), it was
never designed to be that way, it was designed to help needy children.

"But when what you earn increases, so does the amount you pay (in child
support)."

The report found the cost of running the CSA, the increased welfare and
lost
productivity blew out to $5 billion in the 2002/03 financial year and
forecast it would cost another $66 million over the next decade.

The government recently announced a child support taskforce to examine the
CSA system. It is due to report in March.

Actually I have read this report and others.

Like the one by the Department of Employment that is at a loss as to why so
many men at their peak productive age are dropping out of the workforce.
This report was written up in the Australian Financial Review a while back
now. It turns out that at lower incomes it pays (more disposable income)
for people to go on unemployment benefits and pay only $20 per month in
Child Support rather than continue working and pay much more. In Australia
Child Support is calculated on income before tax but paid from income after
tax. The indirect costs to the economy of having such an unfair Child
Support system is huge.

But thats not all.

People on higher incomes may not want to choose unemployment because they
have too much to lose. For example a car, a house, a job they like. So
they may keep on working even harder to try and make ends meet. Child
Support obligations survive bankruptcy and infact just keep on accumulating
arrears, so that isn't an option. This is the group that concerns me. That
is because this group of people often feel that they are in a no-win
situation. Work harder and the Child Support amount simply increases. Then
something goes wrong. They lose their job or get sick and the wheels fall
off. A great number of these people do in fact commit suicide. Anecdotally
this number is approximately 1000 per year. However C$A will not release
the number of cases terminated by the unexpected death of the paying parent.
I wonder why ...

PDM

"YooperBoyka" wrote in message
news
Y'know,...I might pay *some* attention to this kinda **** if you added
some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?


"Dusty" wrote in message
...
Child support drives dads to dole: study
September 22, 2004 - 8:14PM

Australia's Child Support Agency is grossly mismanaged and driving dads
onto
the dole queue, according to a new report.

The PIR Independent Research group report found many dads were opting
out
of
the workforce because they faced the prospect of losing up to 62 per
cent
of
their after-tax wages in child support payments.

As a result, the CSA system had driven up the unemployment rate for
separated fathers to more than six times the national average, it said.

More than 70 per cent (221,375) of all unemployed men aged over 20 in
Australia now pay child support.

With more separated dads on welfare, children now received less money
than
before the CSA was set up in 1988 - just over $48 a week then to about
$36
a
week now.

"PIR Independent Research has reached the conclusion that the child
support
scheme is the primary driver of unemployment in Australia," it said.

"On top of high income tax rates cutting in at low levels, separated
fathers
can be left with less than 20 cents in the dollar.

"This provides strong disincentives to work."

The report estimated that more than 1.26 million parents were wrapped up
in
the CSA system, with over $1.9 billion being paid in child support.

PIR head Richard Cruickshank said the company decided to compile the
report,
despite a lack of cooperation from CSA, to help all taxpayers realise
the
enormous problems and costs with the system.

Many children were now only receiving about $5 a week, the maximum
parents
paying child support have to hand over if they are unemployed.

The other major impact, he said, was that the government was paying out
about $180 a week in welfare payments to unemployed parents paying child
support instead of reaping the taxes they would have paid had they
remained
in the workforce.

The report said the formulas used by the CSA to calculate child support
payments had serious flaws and accused the CSA of being grossly
mismanaged.

Mr Cruickshank suggested both parents be forced to pay half the cost of
raising their children.

"I think most fathers would like to pay for their children," Mr
Cruickshank
told AAP.

"But this is an escalating formula (used to calculate payments), it was
never designed to be that way, it was designed to help needy children.

"But when what you earn increases, so does the amount you pay (in child
support)."

The report found the cost of running the CSA, the increased welfare and
lost
productivity blew out to $5 billion in the 2002/03 financial year and
forecast it would cost another $66 million over the next decade.

The government recently announced a child support taskforce to examine
the
CSA system. It is due to report in March.

I rather thought it spoke for it self how the system is so screwed up.

"YooperBoyka" wrote in message
news
Y'know,...I might pay *some* attention to this kinda **** if you added
some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?

Besides.. I don't see anyone else posting pertinent information.

"YooperBoyka" wrote in message
news
Y'know,...I might pay *some* attention to this kinda **** if you added
some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?

"Dusty" wrote in message
...
I rather thought it spoke for it self how the system is so screwed up.

....but it's not *you* speaking.
Yet you put your name on it.
*You* post it without comment.
You're not the first, and it doesn't really bother me,
I just thought I might point out that *I* am not very
likely to read *any* of these articles when they're
"cut and paste" posted in bunches.
Post a link, and tell us what you think, or ask a question,
something.
Please.



"YooperBoyka" wrote in message
news
Y'know,...I might pay *some* attention to this kinda **** if you added
some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?

Not everyone has the opportunity to skate through work and surf the net all
day reading tons of articles and sifting through it all. So, when I see
something of interest, or something that I believe someone else might get
something out of - I post it - unlike, say, yourself!

And since it really doesn't bother you - what's your point?!?

Further more, since I really don't care if you read any of my posts, again,
so what??

Quit your sniveling and get back under the rug.


"YooperBoyka" wrote in message
...

"Dusty" wrote in message
...
I rather thought it spoke for it self how the system is so screwed up.

...but it's not *you* speaking.
Yet you put your name on it.
*You* post it without comment.
You're not the first, and it doesn't really bother me,
I just thought I might point out that *I* am not very
likely to read *any* of these articles when they're
"cut and paste" posted in bunches.
Post a link, and tell us what you think, or ask a question,
something.
Please.



"YooperBoyka" wrote in message
news
Y'know,...I might pay *some* attention to this kinda **** if you added
some
kinda
personal opinion to it, instead'a just playin' "cut and paste".
How do we know if you even *read* it?

"Dusty" wrote in message
...
Not everyone has the opportunity to skate through work and surf the net
all
day reading tons of articles and sifting through it all. So, when I see
something of interest, or something that I believe someone else might get
something out of - I post it - unlike, say, yourself!

And since it really doesn't bother you - what's your point?!?

Further more, since I really don't care if you read any of my posts,
again,
so what??

Quit your sniveling and get back under the rug.

This *is* "under the rug" genius.
Many of you have come and gone, none realizing they're not the first,
....and I'm still here.
Sounds like "under the rug" to me.
So *get out*!!!!
Yer stirrin' up the dust.
....or you could buy an original thought.

Goodie, it's the only way to get them to listen and change the system.all
men should give up work and show them we mean business........



"Dusty" wrote in message
...
Child support drives dads to dole: study
September 22, 2004 - 8:14PM

Australia's Child Support Agency is grossly mismanaged and driving dads
onto
the dole queue, according to a new report.

The PIR Independent Research group report found many dads were opting out
of
the workforce because they faced the prospect of losing up to 62 per cent
of
their after-tax wages in child support payments.

As a result, the CSA system had driven up the unemployment rate for
separated fathers to more than six times the national average, it said.

More than 70 per cent (221,375) of all unemployed men aged over 20 in
Australia now pay child support.

With more separated dads on welfare, children now received less money than
before the CSA was set up in 1988 - just over $48 a week then to about $36
a
week now.

"PIR Independent Research has reached the conclusion that the child
support
scheme is the primary driver of unemployment in Australia," it said.

"On top of high income tax rates cutting in at low levels, separated
fathers
can be left with less than 20 cents in the dollar.

"This provides strong disincentives to work."

The report estimated that more than 1.26 million parents were wrapped up
in
the CSA system, with over $1.9 billion being paid in child support.

PIR head Richard Cruickshank said the company decided to compile the
report,
despite a lack of cooperation from CSA, to help all taxpayers realise the
enormous problems and costs with the system.

Many children were now only receiving about $5 a week, the maximum parents
paying child support have to hand over if they are unemployed.

The other major impact, he said, was that the government was paying out
about $180 a week in welfare payments to unemployed parents paying child
support instead of reaping the taxes they would have paid had they
remained
in the workforce.

The report said the formulas used by the CSA to calculate child support
payments had serious flaws and accused the CSA of being grossly
mismanaged.

Mr Cruickshank suggested both parents be forced to pay half the cost of
raising their children.

"I think most fathers would like to pay for their children," Mr
Cruickshank
told AAP.

"But this is an escalating formula (used to calculate payments), it was
never designed to be that way, it was designed to help needy children.

"But when what you earn increases, so does the amount you pay (in child
support)."

The report found the cost of running the CSA, the increased welfare and
lost
productivity blew out to $5 billion in the 2002/03 financial year and
forecast it would cost another $66 million over the next decade.

The government recently announced a child support taskforce to examine the
CSA system. It is due to report in March.