Am I social security benefits better off getting divorced?

LMiaSanMia on 08/12/2015 - 16:57

Am I social security benefits better off getting divorced?

Hi there,

I am 28, married and have one young infant. I've received 18 week parental leave payment which has stopped this month. My pre-maternity work income was $1200 pf. While my intention is to stay home and look after my baby until she's big enough for child care (i'm scared of the fact that having to send my less than 1 year old infant to child care), the only work income we have is from my husband, which is $55k/yr. We are currently paying off a mortgage which still have almost 80% debt. So when I'm staying home looking after my baby, all we're going to receive is part of the FBT A & B benefits, which from my estimate is about $340 pf

Now let's look at this scenario:

A single mom, 28 year old, work part-time earning cash, renting. She's a single mom, (ie doesnt disclose who's the father with Centrelink, In fact she lives with her boyfriend unmarried, raising their kid together). Now see what's she getting:

$731 pf for single parent payment
$151 pf rent assistance
$350 FBT A & B
Total: $1232!

This is more than my work income pre-maternity leave! How could this be possible, staying home & earning more than someone working?!? Plus the fact that she could potentially earn cash income which doubtedly any tax paid and won't affect her Centrelink benefits.

I understand this scenario is hard for me to achieve & I'm not going to follow it, also it will not have a long term benefit for my family future without saving anything in super, however if you can have $1.2k x 26 fortnights x 16 years (when parental payment stop), the system will have to use …. HALF A MILLION of taxpayers money to gift this single mom!

What make it even more unbelievable is when the kids grown up and those benefits stop this group of people could potentially do a dodgy marriage with foreigners for cash :(

This is WRONG and Centrelink surely has to correct it! At least improve their system in screening this sort of loop-holes.

Financial

Comments

  • Looking4Bargians on 08/12/2015 - 17:02
    +7

    Living on our Tax. Our earning. Shame on those.

  • clarebear on 08/12/2015 - 17:05
    +4

    Thats not right if the mother lives with her boyfriend. She is partnered so would only get parenting payment partnered if they both earn around under $50,000 i'm pretty sure. She shouldn't be getting the single parent pension.

  • spackbace on 08/12/2015 - 17:06
    +3

    Now try living off $600pw, with a kid, with rent (you've listed rent assistance, so she's not in government housing).

    Plus all child payments change as they get older, something your figures dont take into account.

    Not saying it's right, but also not something to worry about so much…

    • MiaSanMia on 08/12/2015 - 17:31

      How about try finding a proper tax-paid job, honestly declare relationship status? We will be going through issues with raising kids, changes in life too. What I mean here is an unfairness which will cost our future generation painfully if it's not getting fixed soon. It doesn't make sense to me that someone who stay home and receive an amount equivalent to full-time employment.

      • spackbace on 08/12/2015 - 17:47
        +4

        You're looking at a 'what-if'…Not to mention someone who cheats the system!

        honestly declare relationship status?

        So you're saying that you're case example is a welfare cheat… why use that as an example?! That's not the governments fault they're cheating, nor is is something anyone should consider doing!

        Not to mention, how do you know the government doesn't have ways of finding these cheats?! Now with all the agencies connected (just look at the new MyGov site), it would probably be damn hard to keep up that charade

  • gringo on 08/12/2015 - 19:09
    -2

    If you get more than $8k per year in tax deductions you are getting more welfare than someone on the dole. This includes negative gearing.

    I doubt you are missing out.

  • robbyjones on 08/12/2015 - 20:04
    +4

    There is no loop hole. In your scenario the mother is obtaining funds fraudulently by not declaring her cohabitation.

  • [Deactivated] on 08/12/2015 - 20:30
    +1

    could potentially do a dodgy marriage with foreigners for cash

    Does this happen often?

    • Malarkey on 08/12/2015 - 22:14
      +1

      It used to be a lot more common. The government has started cracking down on it.

  • altomic on 08/12/2015 - 21:21
    +3

    She living with her partner and claiming single parenting payment?! Ring centrelink and Let them know. That's your, my and every other oZbargainers tax - all for her to take unfair advantage of the system.

  • Findo on 08/12/2015 - 21:35
    +4

    My mother is an interpreter contracted to Centrelink and she says they are cracking down on undeclared de-facto relationships hard, so it's not possible without great risk - not to mention extreme moral wrongs and the fact you're ripping off the government.

  • vetopower on 09/12/2015 - 10:38
    -1

    This is a ridiculous post. As others have said, its calculations are based on the assumption that someone is acting illegally.

    Further, it assumes that money is the only consideration at play. Would you really prefer to be (a) a single parent raising a child with government assistance that barely covers the cost of living instead of (b) being with your partner, who is able to provide you with enormous emotional and physical support to help raise your child? Remember that in a partnership you will have the opportunity of massively increasing your income once the children reach childcare or school age while the single parent will only ever have one income.

    I am more than happy for my tax dollars to go to supporting single parents. They have an extraordinarily difficult task and, if they do it poorly, we all suffer because they will raise poorly adjusted children.

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