Australia- $90 million in welfare props up Radio Rentals business model

Last financial year the Australian homeware company radio Rentals total revenue was $197 million, and $90 million of that came from the federal Department of Human Services through the direct debit Centrepay system. Half of the Centrepay revenue received by Radio Rentals, or about $45 million, was for entertainment items like televisions or smart phones.

The Centrepay system was originally designed to help Centrelink customers budget, with money for bills directly debited from bank accounts as soon as benefits are paid. However, in recent years payments for more discretionary spending such as leasing flat screen televisions and sounds systems have increased.

Radio Rentals advertisements target people on Centrelink benefits, with one promotion saying, “I’m on benefits and I got a fair go.” “Norma” is a grandmother who lives in Sydney’s western suburbs. She signed up to lease a Dyson vacuum cleaner from Radio Rentals three years ago.

Since then she has paid about $40 a fortnight, for a total of more than $2,000. She has more than a year left on her Radio Rentals contract with another $900 to pay. “It was just one of those spur of the moment things that I did and now I’m regretting every single day, not the vacuum but the whole deal,” Norma said.

I wonder, would the directors of Radio Rentals ever vote for a political party that promised to cut welfare?

Socialism is not only about taking money from the productive and giving it to the unproductive in return for their vote, its also about cronyism, graft and corporate welfare. How many pubs in NW Australia would go broke if the govt stopped welfare payments to aboriginal groups??



Categories: Australian Politics, Culture

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3 replies

  1. Similar things are happening here.

    What business man would turn down the opportunity to deal directly with the money men directly, rather than the human trash that do not want to pay, for anything.

    Like

  2. How many pubs in NW Australia would go broke if the govt stopped welfare payments to aboriginal groups??

    none these days – the Howard govt made all aboriginal communities dry by decree. But there are a lot of white trash bludgers, and a lot of Kiwis, drinking in Sydney, Melbourne, and Brisbane on Aussie taxpayers dollars!

    Like

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