Child poverty, domestic violence reduced by new parenting payment rules

An Albanese government change to the parenting payment rules will result in less domestic violence, fewer children living in poverty and more single mothers being able to pursue paid work, advocates say.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers in the PM's office at Parliament House in Canberra.. Picture: NCA NewsWire / Martin Ollman

A budget change to allow greater access to the parenting payment will help reduce child poverty, save more women from domestic violence and support single mothers to achieve their career ambitions, welfare advocates say.

Anthony Albanese on Monday committed to raise the age cut-off for the Parenting Payment (Single) from when the youngest dependent child turns eight to 14.

It means eligible parents, 90 per cent single mothers, will remain on the parenting payment, which has a base rate of $922.10 per fortnight rather than moving to JobSeeker, a $176.90 per fortnight difference. The policy change will support an additional 57,500 parents and add just under $2bn to the federal budget over four years.

National Council of Single Mothers & Their Children chief executive officer Terese Edwards.

“I know first-hand what it‘s like to grow up with a single mum doing it tough, and we want to make sure that the children of single-parent families have the best opportunities in life,” Mr Albanese said.

“Single parents carry the world on their backs. They sacrifice so much to give their children a better life. This is about giving them the greater security and better support they deserve.”

The change to the parenting payment was the first of six priorities for urgent action proposed to the government by its Women’s Economic Equality Taskforce in a report three weeks ago.

It is designed to allow time for a single parent’s youngest child to be settled into high school, giving the parent more opportunity to take on more paid work.

While the taskforce and advocates were pushing for the age limit to return to 16, where it had been before policy changes by previous governments on both sides of politics, they were also relieved it was greater than 12, which had been the pre-budget speculation.

Single Mother Families Australia chief executive Terese Edwards said the change was “an intergenerational investment”.

“We know of the correlation between not completing studies and losing PPS. Women may now have a fighting chance to work towards claiming their ambitions,” Ms Edwards said.

Anti-Poverty Week executive director Toni Wren said the change “will help reduce child poverty.”

“The risk of poverty for children in sole parent families is more than three times that in partnered families, 39 per cent compared to 12 per cent,” Ms Wren said.

“We know that growing up in poverty diminishes children’s lives at the time and in their future. Many single parents sacrifice their own needs every day to ensure the best for their children.”

Teal Independent Zoe Daniel said lifting the PPS cut-off age “increases women’s safety by making them less likely to return to abusive partners.

MELBOURNE, AUSTRALIA - MARCH 14: Teal Independent Zoe Daniel (Photo by Asanka Ratnayake/Getty Images)

“It increases economic security and financial safety. It provides solid ground for women to enter paid work and study. Put simply, it enables a pathway to a better life,” Ms Daniel said.

Australian Council of Social Service chief executive Cassandra Goldie said she was pleased to see Mr Albanese use “the language of investment” with regard to supporting single parents.

“(These parents) can now think about being able to buy uniforms for their children, being happy that their children … can go on school camps,” Dr Goldie said.

“It’s the additional spend many of these parents have not been able to face because of the cut off at age eight and because they move onto a payment system that is so much lower and effectively poverty.