One of the problems with Welfare for Families is the deterrent to earning more because of the high marginal tax rate on increased earnings. This means that most of each extra dollar earned is cancelled out by a reduction in the WFF payment.
Another problem is that the welfare payment finishes when a child turns 18, but as anyone with a student in the family will tell you, the costs of parenting don’t stop on your offsprings’ 18th birthdays.
It’s very easy to adjust to an increased income, it’s much more difficult to become accustomed to a decrease, especially when the demands on the family purse are growing.
I’m not sure what the solution to this problem is – but I am sure that it’s not extending WFF to dependent offspring beyond the age of 18
Homepaddock 