Wednesday 16 May 2012

Divorce in decline in Australia by GDL

Strangely as it may sound divorce is in decline in Australia. The number of divorces granted in Australia has been decreasing each year since reaching a peak in 2001. A recent report from the Australian Bureau of Statistics, shows that divorce is in decline and marriage is on the rise. In 2009 there were 118,756 marriages registered and 121,176 in 2010. This represents an increase of 0.9 per cent or 1,058 more marriages. It is the highest number in any one single year. In contrast, there were only 47,209 cases of divorce in 2009 as compared to 52,700 on 2004. Why this turnaround when one decade ago, one out of 3 marriages ended in divorce?
Studies carried out on a marriage breakdown found many reasons e.g.  marrying too early, poor communication, basic unhappiness, loss of love, incompatibility, infidelity, mental illness, emotional problems, deception over expectations of roles, low education, low income, parental divorce, early pregnancy, interpersonal conflict, just to name a few. It is also found that very often divorce is very much associated with economic circumstances and if the couple’s financial situation is stable, the couple has one thing less to argue about.
On the other hand, the Institute has identified the following attributes of healthy couples are: a sense of respect and feeling appreciated, trust and fidelity, good sexual relations, good communication, shared values, cooperation and mutual support, enjoyment of shared time, a sense of spirituality and the ability to be flexible when confronted with frustrations and changes, appreciation for each other.
Commenting on the decline in divorce, Peter Macdonald, Head of Demographics at the Australia National University, found that one reason for the divorce in decline, could be the trend of living together before marriage. He said that in 2008, seventy-eight percent of marriages were preceded by a couple cohabiting.
The economic argument also looks valid towards the longer duration of some marriages. The Australian economy has been strong for the past decade, and there has been a low rate of unemployment. The economy of Australia was not so much affected during the Global Financial Crisis in 2008 and we did not face any recession as opposed to USA and other European countries. As the economy continues to grow with the unprecedented mining boom, and record exports to China, and the other Asian Countries, this seems to have positive impact both on the economy as well as on social life. It coincides with the fact that families seem to be sticking tougher more.
Another factor contributing to the decline of divorce is the new composition of Australian population i.e.  the increasingly Australia multiculturalism.                                  According to the population census conducted last year, 27 percent of Australian residents were born overseas and increasingly, coming from South East Asia.
 According to the Australian Bureau of Statistics,
From the beginning of the 1970s until the late 1980s, the proportion of the population born overseas remained steady at about 20% and, following an increase in immigration levels at the end of the 1980s, rose to 23% in 1990. Further arrivals of migrants in the 1990s and 2000s contributed to the increase in the overseas-born population, with their proportion of the overall resident population rising to 27% by 30 June 2010.”
The census also shows that the fastest growing community is to be those coming from India. These new migrants usually have a strong belief in spirituality, marriage and family life. As the Family Institute study found that spirituality is a contributing factor to longer relationship, divorce rate in these Asian communities is consequently very low. This also contributes to getting the numbers of marriage up and the rate divorce down.
My neighbours, a young couple coming from India, explained:
“Marriage is sacred in the Hindu religion. Very often marriage is arranged by the two families who consequently become very close, a small community is formed. The lengthy ceremony of marriage itself denotes how important this event is. There is always “surveillance” from the parents to see that the marriage works. A breakdown is a shame to both families.
The overall news that divorce is in decline, means that there is less family breakdowns and less suffering both for the couples and particularly for children. Fewer divorces denote more stability on the social front which also have positive outcome for the economy at the individual, family and national levels.
This is indeed good news for the whole Australian society.   

Sources:
The Institute of Family Studies www.afs.gov.au
The family Law Court www.familylawcourts.gov.au
The Australian Bureau of Statistics: www.abs.gov.au/
The Sydney Morning Herald, Sept 2001
The Age Sept 2009



Sunday 13 May 2012

A surplus labour budget after so many years.

It was a promise they made after the spending spree of the past 5 years i.e since labour came back to office in 2007. From a surplus budget left by Peter Costello, it went down last year to negative $44b.

Labour had to deliver on its promises by hook or by crook to get the budget back in surplus although by a minimal 1.5 b. It also had to give away some goodies as the general elections looms and this is exactly what Treasurer Wayne Swan did.

Labour presented a budget which is tailored for the lower and middle class, for the battlers. A budget with cutting income tax is rare. The tax free threshold tripled going for $6,000 to $18,200. This means that people earning less that $18,200 will pay zero tax and if it has been deducted at source, they will get the refund. This represents some 1.5 million taxpayers paying no tax al all.
It also means that all those earning beyond $18,200 will not pay tax on the first $18,500 which was at the rate of 22%. It represents a saving of close to $2,000.
Pensioners will get an increase of $338 and families with school children will get $410 for primary and $820 for secondary students among other benefits.

The budget forecasts a surplus of $1.5 billion coming from a deficit of $44 billion. It means that new revenues and savings will amount to $45.5 billions. While cost cuttings have been a hard thing for labour who always favour big spending and deficit budgets, they have now done it. It affects many government departments and some public servants will face redundancies.
This surplus, according to wayne Swan, will continue to increase over the years. But remember this is only a forecast and will only come to reality or not at May of next year.

Most of the government revenues will come from the Mineral Resources Rental Tax and the new Carbon Tax. They are both taxes on big business. The MRRT is fair when we know that billionaires are getting everyday richer exploiting our land. It takes great courage to tax these powerful people like Clive Palmer, Gina Reinhart and Mr Forrest who are favoured by the Liberals.
The Carbon Tax will be imposed on  some 200 businesses who are consistently and continuously polluting our atmosphere. It aims at reducing emission by 5% by 2020.  The CT will be changed into an Emission Trading Scheme after some time.

In the budget speech there was hardly any mention of the Carbon Tax. These words are toxic to the government as this is the Black Caviar ( the winning horse) of the opposition. Campaigning against the carbon tax has caused damage to the government. It has become a slogan which  hammered by Tony Abbott so much so that the majority of Australians now believe that it is a bad tax, that will affect us all. It comes into effect on 1st July and it is only after a few months, or a year later that we will feel the real effect of this tax, if it will really drag prices up and our standard of living down. It remains to be seen and proved. If it doesn't it will surely backfire on the opposition as this is their only weapon. A weapon that Tony Abbott used extensively in his budget speech reply.

The budget of Wayne Swan was definitely a leftist and an electoralist one. It shows that Labor wants to connect back to its base i.e the lower and middle classes. Will this pay off in the months to come ?
The answer will be in the polls three months before August 2013. But for now, labor is still in deep shit. Their battle is definitely uphill.
GDL