dole up $80 per week. good or bad?, page-31

Federal minimum wage is $28,275. Net tax on this is $2,565, so net is $25,710 of $494 per week. Lets assume that our low wage earner is very frugal, takes his own lunch to work, spends to money as work, but uses the bus, so travel expenses of $30 per week. Also assume no child care costs. So after travel this person has $464 per week.

Someone on the dole gets following per week

Newstart $228
Rent assistance $56
Telephone all $2

So a total of $286

The difference of $180 between the dole and minimum wage provides an incentive to work. Note that people with children get a higher newstart and rent allowance so the incentive (i.e this gap) is less.

Always a difficult question as to the appropriate dole level, but in my opinion current level is probably about right.