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I encounter people on a regular basis who abuse the system. The prime example is people on their second marriage and for Centrelink purposes are "single" but are in all reality are a couple. (they just maintain separate addresses) They then apply for 2 x the single aged pension which is...

single mother of 6 kids under 8 would be on $56,810 pa tax free.....

The problem is, for those in the welfare system, you are rewarded you for having more children. More Children means more money. If it was payments were capped you find that there would be less payments. As an example head on over to centrelinks rate estimator and have a look. For an...