It's Time - The Whitlam Program

The Whitlam Program

During its time in office, the Whitlam Government embarked upon an ambitious programme of social reform, in keeping with the promise of change that the ALP campaign emphasised. The social radicalism of the Whitlam Government was such that, during its first thirteen days in office, some forty important decisions had been made.

As noted by one historian, “Labor’s extensive reforms during its first term in office were the high water mark of Australian postwar social democracy". Upon coming to office, the Whitlam Government granted federal public servants paid maternity leave, a thirty-six and a quarter hour workweek, large wage rises, and four weeks annual leave. Free tertiary education was introduced, together with a universal health care system and a sole parent pension. Laws were also passed providing for equal pay for women and national land rights, divorce laws were made more liberal, and legislation against racial discrimination was introduced. In addition, the principle of equal pay was extended, occupational health and safety had been improved, annual leave loading was introduced, trade union education was established, four weeks of annual leave was achieved as a national standard, military conscription was abolished and Australian troops were withdrawn from Vietnam, a separate ministry responsible for Aboriginal affairs was established, controls on foreign ownership of Australian resources were put in place, laws against sexual discrimination were passed, maternity leave and benefits for single mothers were extended, an attempt was made to democratise the electoral system through the introduction of one-vote-one-value, and a Community Health Program was introduced. The social services were also significantly expanded, with spending on housing quadrupled, education outlays doubled, and federal health expenditure rising by 20%

A significant amount of legislation was passed altogether from 1972 to 1975, with 221 acts passed by parliament in 1973 alone, while the welfare state was significantly extended. Public spending was raised significantly, with the 1973 budget quadrupling spending on housing, tripling outlays on urban development, and doubling spending on education. Through initiatives such as the Australian Assistance Plan and the Regional Employment Development scheme, employment opportunities were expanded and funds allocated towards improving services and amenities in deprived areas, as characterised by the construction of new health centres, community houses, legal services, footpaths, sewers, streetlights, and public libraries.

A wide range of new benefits were introduced, such as a handicapped child’s allowance, a special orphan’s pension, and the Supporting Mothers Benefit. Rates of sickness and unemployment benefits were increased to bring them in line with other social security benefits, while funding was provided for child care, women’s refuges, and community health programs. The means test for pensioners over the age of seventy-five was abolished in 1973, and in 1975 the means test was abolished for all pensioners over the age of seventy. As a result of the welfare measures undertaken by the Whitlam Government, social expenditures as a percentage of GDP rose from 12.5% to 17.6% during its time in office.

Needs-based funding for schools was implemented, spending on technical colleges (including the construction of residential accommodation for students) was significantly increased, while special initiatives for the handicapped, Aborigines, and isolated children were also introduced. Farmers benefited from tariff cuts and additional markets established by the Whitlam Government’s trade and diplomatic initiatives, together with higher spending on regional education and health, rural research, and other upgraded country facilities.A number of measures were also undertaken to enhance women’s rights. International conventions on equal pay, discrimination, and the political rights of women were ratified. New health centres and many women’s refuges were established throughout Australia, together with a pre-school and child care program which catered for 100,000 children. In addition, reforms were carried out which enshrined democracy in the internal administration of unions.

In 1978, one observer praised the Australian Assistance Plan for generating

“much more general acceptance of the concepts of welfare for the community and local participation. Moreover, a great deal ahd actually happened. During the year 1975-76, 1408 grants for community welfare projects were approved by the Social Security Department. A detailed list of AAP projects includes projects relating to citizens’ advice bureaus, community centres, and resource centres, projects to aid families, women, children, young people, the aged, the handicapped, migrants and the needy. It would be difficult to refute the conclusion that the sum of $6.6 million granted to Regional Councils of Social Development in 1975-76 promoted a very large amount of constructive welfare activity because it was spent in support of local and often voluntary efforts.”

In March 1973, the service pension was extended to war widows, and in September that year the means test on service pensions was abolished for recipients over the age of 74. In May 1975 the means test was abolished for the age group 70-74 years. Free artificial limbs were also made available through the repatriation artificial limb and appliance centre to all amputees, while free medical and hospital treatment was introduced for veterans of both the Great War and the Boer War and for ex-prisoners of war. The Mental Health and Related Community Services Act of 1973 made grants available to the states for the provision of community-oriented services for drug, alcohol, and mental problems.

The government introduced reforms for the superannuation arrangements of its own employees. In July 1973, for instance, the government financed element of pensions was properly indexed against changes in the cost of living for the first time. In August 1973, fair rent provisions for houses and flats were introduced, while a separate housing list for needy families was introduced. In 1974, a generous rental rebate scheme and improved concessions on government loans were introduced to benefit low income earners. A disadvantaged schools program was launched which provided additional financial assistance for more than 1,000 schools whose students suffered special socio-economic disadvantages. Funds were provided to improve the education of handicapped children, while money was also made available for upgrading accommodation in homeless persons’ centres, while finance was also made available to centres on a pro rata basis for the provision of meals and accommodation.

Tariffs for farming implements and equipment were reduced, and farm incomes more than trebled during Whitlam’s time in office. In 1973, a payment of emergency adjustment assistance was initiated to benefit canning-fruit growers and growers of pears and apples, while the Dairy Adjustment Act of 1974 provided generous assistance for financially unsound dairy farms.

A Supporting Mother’s Benefit was introduced in 1973 to alleviate financial deprivation amongst women whose de facto husbands were in jail, deserted de facto wives, unmarried mothers, and other wives separated from their husbands who, for other reasons, were not eligible for the widows’ pension. A Double Orphans’ pension was introduced that same year, providing $10 a week to the guardian of an orphan who had lost both parents. The Handicapped Childrens’ Allowance, introduced a year later, provided $10 a week to the guardians of severely physically or mentally handicapped children who had not been placed in an institution. A special discretionary benefit was introduced for lone fathers in August 1974, payable at the unemployment benefit rate. In February 1973, eligibility for the standard rate of pension, payable to widow pensioners with children and single age and invalid pensioners, was extended to Class B widow pensioners (those over the age of fifty with no dependent children). A change was also made ensuring that pensioners would not lose their extra benefits when a student turned twenty-one. The standard age pension rate was increased from 19.5% of average weekly earnings in September 1972 to 24.4% by December 1975. Social welfare administration was made more efficient and equitable via the establishment of a Social Welfare Commission and benefit appeals tribunals.

For women, many women’s refuges and health centres were established throughout Australia. A pre-school and child care program was introduced which catered for 100,000children around Australia.Equal pay was introduced for women in the Australian Public Service. The sales tax on artificial contraceptives was removed, while grants were made for family planning organisations. Maternity leave provisions for the Public Service were introduced consistent with the requirements of ILO Convention No. 103 – Maternity Provisions (Revised), 1952. The Aged or Disabled Persons’ Homes Bill of 1974 increased the Federal subsidy for aged persons’ homes from two dollars for every dollar provided by a non-profit or local government association to four dollars,w hiel also extending the provisions of the Aged persons’ Homes Act of 1954 to handicapped adults.

The Handicapped Persons’ Assistance Bill of 1974 extended the government’s program of assistance to voluntary organisations responsible for the welfare of handicapped people. While spending on education increased from 4.83% of GDP in 1972-73 to 6.18% in 1974-75, the Federal government’s share of funding went up from 22.6% in 1972-73 to 42.5% in 1975-76. The Defence Service Homes Act of 1973 extended eligibility for a loan to current servicemen who had not served overseas but who had served for more than three years, to those who had served overseas under the banner of recognised welfare organisations, and to certain unmarried females with qualifying service. In addition, the maximum loan available under the scheme was increased from $9000 to $12000.

For veterans, an expanded system of repatriation benefits was introduced, together with improved resettlement allowances, wider eligibility for defence service housing loans, a $1000 free-tax bonus for re-engagements, an attractive new retirement and death benefit scheme, and a more generous system of remuneration.

The Whitlam Government also sought to extend to Federal public servants the conditions that their State counterparts had long enjoyed. Amongst the benefits that the Whitlam government introduced for Federal public servants included a reduction in the qualifying time for long-service leave from 15 to 10 years, the removal of job discrimination provisions against women, ample redundancy provisions, a minimum of 12 weeks paid maternity leave with six weeks of paid leave following confinement, one week of paid paternity leave for any employee required to stay at home to care for his wife during or following her confinement, and entitlement to four weeks of annual leave with a 17.5% loading.

The government also financed a wide range of new local government programs through the State, including tourism, urban transport, national estate, leisure facilities, sewerage backlog, flood mitigation, area improvement, growth centres, and senior citizens’ centres. Outlays on Aboriginal affairs programs were significantly increased with expenditure rising in real terms by terms by 254.6% for legal aid, employment by 350.9% for employment, education by 97.1%, health by 234.6%, and housing by 103.7%.

In 1973, an improved scheme of allowances was introduced to assist parents of children who did not have reasonable access to school services as a result of their geographic location. The quality of health care in rural areas was also improved via the development of a regional hospitals program and promotion of community-based health services. The Trade Union Training Authority Act of 1975 set up a national college and State centres designed to educate trade union leaders in various aspects of industrial relations. The Commonwealth Secondary Scholarship Scheme was replaced by a system of secondary allowances which were made available on the basis of financial need. An isolated children’s allowance was introduced to compensate the educational disadvantages faced by children living in remote parts of the country.

Greater spending was allocated to the arts, while the Handicapped Persons’ Assistance Bill of 1974 extended the Government’s program of assistance to voluntary organisations responsible for the welfare of handicapped people. Spending on urban and regional development was accelerated, which contributed to a significant rise in the number of Australian households connected to a sewerage services. A School Dental Service Scheme was also introduced, providing free dental care for schoolchildren. Via grants to the states, the Whitlam Government funded the construction of 18,500 homes for low income earners from 1973 to 1975.

The voting age was also lowered to eighteen, and grant programs for regional development were introduced, which provided for urban renewal, the construction of sewerage systems in unserviced urban areas, tourist and leisure facilities, and flood prevention. During its last year in office, the Whitlam Government carried out measures such as the introduction of a national employment and training scheme, the first no fault divorce procedure in the world via the Family Law Act 1975, and a welfare payment for homeless Australians.

The budget presented on the 17th of September 1974 included a 173% for urban and regional development, a 30% increase for health, and a 78% increase for education. Regressive license fees for television sets were abolished, while a revised income-tax scale reduced tax payable for people on incomes less than $10,500 a year. The 1975 budget provided funding for the new Medibank health scheme, together with a 2% increase in education, a 5% increase in urban and regional development, and a 15% real increase in social security expenditure.

Despite being in office for only three years, the Whitlam Government was able to carry out a radical programme of progressive social reform, and arguably came far in meeting the promises for change envisioned by its electoral slogan. According to one historian,

“If many Labor supporters regard the Curtin and Chifley governments as a period of great achievements and greater ambitions frustrated by conservative forces, their illusions in the Whitlam government are even more heroic. After nearly a quarter of a century of stagnant conservative rule during which Australia seemed to be a backward looking outpost of the British empire run by monarchists and reactionaries, Gough Whitlam, the Mighty Gough, broke through and during his first 12 months in office remade Australia forever.”