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The NWRN is a network of
services throughout
Australia that provide free
and independent
information, advice and
representation to individuals
about Social Security law
and its administration
through Centrelink.
For member details, services
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MEDIA RELEASE
13 FEBRUARY 2009
Government and Greens deal
to help newly unemployed
National Welfare Rights Network (NWRN) today welcomes the passage of the
Economic Stimulus Package which has now given effect to the agreement by the
Australian Greens and the Government to double the amounts that a person can
have in savings before they are impacted by liquid asset waiting periods which
delays eligibility for Newstart Allowance (NSA).
Kate Beaumont, President of the National Welfare Rights Network said: “The
Greens have obtained agreement with the Government to increase the amount
that a person can have in savings or “liquid assets” so that a person will not have
to rely on and deplete their modest savings while they wait to become eligible for
income support. In 1997, the Howard Government reduced the amounts that a
single unemployed person can have in savings, from $5,000 to $2,500 before
liquid asset waiting periods for benefits cut in. For each $500 in savings above the
threshold, a single unemployed person would have to wait an additional week
before they could receive Newstart Allowance.
“For a single unemployed person with a modest amount of savings this change
could mean that they will have access to Newstart Allowance payments much
earlier than under the current rules. For couples and anyone with a dependent
child the new thresholds will be $10,000, up from $5,000. The great news for
some families who are coping with the shock and financial stress caused by
retrenchment is that they will be able to access Newstart Allowance earlier than is
currently the case.
“For a long-time NWRN has been arguing that these tough waiting periods for
unemployed people made no sense. The stripping of people’s savings was a
policy which was not right for the times. We had argued for the Government to
restore the savings thresholds in real terms to pre-1991 levels, which would mean
a threshold of $7,500 for single people. We had also called for the relaxation of
harsh rules around the treatment of redundancy payments.
“NWRN would like to place on the record our commendation of both the
Australian Greens and the Government in reaching agreement over the issue of
liquid asset waiting periods as this will have immediate beneficial impacts on the
newly unemployed and those who join their ranks during this period of economic
downturn.
“NWRN looks forward to working with those in Parliament to ensure that all
unemployed people – and not just those affected by the current global down-turn
– get the help and support they need to get through the tough times ahead,”
concluded Ms Beaumont.
For comment:
Kate Beaumont, President of the National Welfare Rights Network: 0414 792 923.
For background information:
Gerard Thomas, Policy and Media Officer: 0425 296 882.
NEWS 
