718~ AI
PRIME MINISTER
CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
SECOND ANNIVERSARY OF FAMILY ALLOWANCE SUPPLEMENT
QUEANBEYAN 13 DECEMBER 1989
Today we ar6 celebrating the second anniversary of the
Family Allowance Supplement.
It is one of my Government's truly significant and enduring
improvements in social justice, providing tax-free cash
assistance to low-income families.
At present, more than half a million families some 1.2
million children are being helped with Family Allowance
Supplement payments or their equivalent in extra pensions
and benefits.
This Federal Government assistance provides a valuable and
reliable source of help for families struggling to make ends
meet. Next month we will be lifting the amounts of money to be
paid under the Family Allowance and the Family Allowance
Supplement. FAS payments will be lifted to $ 24.15 a week for each child
under 13 and $ 35.25 a week for teenagers aged between 13 and
Because these payments are free of tax they are far more
valuable than a wage increase of a similar amount.
To illustrate this point, for a single income family earning
$ 320 a week with three children the tax free FAS payment of
$ 109 per week is equivalent to a wage rise of $ 167 per week.
I can say with pride -no other Federal Government has ever
made such a commitment to Australian families.
But we are not resting on our laurels.
We recognise that more can and should be done to help
children and families with children. * 1 W( JH1i
2.
' emov ng hardship is not merely a questiol of providi. ng
secur ty of income but al] so involves the provision of
servi( es by Federal and State Governments and community
organisations services that help children develop to their
maxim m potential and participate fully in society when they
grow ? p.
It is essential that such services are available,
co-ordinated and accessible to the people who need them.
I've Oeen discussing ways we can address this issue with the
Austr lian Council of Social Service.
And I " have this week written to each of the State Premiers
invit! ng their participation in this joint effort.
I am asking the Premiers to review, with us, all the ways we
can inprove the effectiveness of the services for children
we provide.
My fri'ends, I don't make any attempt to deny that many
people are hurting as a result of the tough economic
challqpges we are going through.
High ihterest rates are understandably a focus of community
concer I just, say: let's make sure that in measuring where we
stand, as families or as a nation, we don't rely on only one
yardst ck.
We shoPld look at the totality of the economic picture
improvements in the social wage, and our record levels of
investhent, employment and training all of which are
laying! the foundations for a stronger and more prosperous
Austra ia in future years.
We're & elebrating one significant new element in the social
wage t day, the Family Allowance Supplement. But there are
many o hers: more kids are staying on at school and for
longer there are more university and training places; more
child care places; Medicare; higher real pensions for the
elderly to name a few.
What's important to understand is that these improvements
for pr sent Australians these building blocks for the
wellbe: ng of future Australians have been possible only
becaus of the restraint displayed by the Australian people
over r cent years.
Responsible wage outcomes have meant higher profits; this in
turn h s led to record investment and more jobs.
That il an equation that means a better future for
Austraiians.
4 i
We are also finding, of course, that present Australians
have to endure a period of high interest rates because
interest raies are necessary to slow the surge in imports
we've been xperiencing.
But when interest rates come down as they will when it is
responsible to bring them down we will see even more
clearly that we have created a much stronger Australia:
aP Australia where people are in jobs; an
Australia where some $ 90 billion in new
ivestments are in the pipeline or being seriously
cinsidered; and an Australia where the workforce
it being re-skilled.
And we will have created a much fairer Australia:
a Australia enduringly capable of providing the
a sistance to low income families that we are
c lebrating today. 1 j