So, who says that Armadale is full of bludgers?

Last week, Human Services Minister Alan Tudge thought it was a good idea to release a national “list of shame” for “dole bludger” suburbs. Armadale came out on top of the WA list, ahead of Mandurah and Gosnells.

The obvious question to ask the minister is why publish the list in the first place? Does Mr Tudge want a vigilante group to search out and attack the “dole bludgers”? Or is the minister hoping to shame the “dole bludgers” into behaving as good citizens?

That may work for some but I bet others who are deliberately rorting the system will not be easily shamed.

Make no mistake, no one should abuse our generous welfare system. The rorting has to stop, but naming and shaming is unlikely to work. Instead, address the issue and seek to rectify it.

In response to calls to apologise for publishing the “list of shame”, the defiant minister said he wouldn’t, and that “the data lies where it lies”. But that does not excuse him for failing to understand what the data truly means. Instead, he resorts to insult.

“Unfortunately” he says, “we believe that in some locations a culture might develop where people deliberately flout the welfare system”.

Let the data lie where the data lies, he demands. Fair enough, but let’s understand it. Let’s follow Mr Tudge’s lead and look more keenly than he has at where the data truly lies.

The Armadale workforce is over 43,000 strong, with 188 apparently not meeting work for the dole requirements. That equates to 0.5 per cent of the Armadale workforce, which is hardly indicative of a culture of dole bludgers or a hotspot.

Now, drive through Jutland Parade in Dalkeith, or any other street leading off this prime real estate. Then drive through any street in Armadale.

I would bet my bottom dollar that you would conclude that, generally, the people of Dalkeith earn more and have more wealth than the folk who live in my Armadale community. Moreover, you could conclude quite reasonably that, based on Australia’s progressive tax system, they pay more tax.

You would be wrong. Australian Taxation Office statistics show that in the 2014-15 financial year, Armadale produced more taxable income than Dalkeith did — $1.7 billion versus $1.5 billion.

What’s more, the Armadale community paid more on the Medicare levy than did Dalkeith — $716,000 to $387,419.

But it doesn’t end there. In the 2014-15 financial year, Dalkeith residents received more government pensions and allowances per person than Armadale did — $8398 versus $7863.

Therefore, it will not surprise you to learn that Dalkeith residents paid more to accountants for tax purposes per person than residents of Armadale did — $1342 versus $290.

So here is the picture. It is obvious that there is more wealth in Dalkeith than in Armadale — whether in assets or income. But the owners of the wealth in Dalkeith paid less tax on income and received more government benefits than did their less wealthy opposite numbers 35km down the road at the foot on the Darling Range escarpment. I will let you draw your own conclusions as to why this is so. Maybe the fact that Dalkeith people spend more money paying accountants to manage their tax affairs has something to do with it.

On that score, figures released by the ATO for the 2012-13 financial year are illuminating.

Fifty-five people reported annual income of more than $1 million but managed to pay no income tax. These 55 people had a total combined income of $129 million, which equates to an average income for each person of $2.35 million.

But, through careful planning by their tax advisers, they were able to record a combined loss of $12.866 million. Forty of the 55 untaxed millionaires spent a total of $42.5 million on “managing their tax affairs”. Of course, the cost of engaging tax advisers is tax deductible.

Tax avoidance, or minimisation, is legal, unlike tax evasion, which is not. I understand that. But, as a long-term resident of Armadale and the local member, it does gall me when Mr Tudge labels my community a dole bludging hotspot even though we pay more income tax and receive fewer government benefits than many “richer” communities.

But unlike Mr Tudge I will not use the data to generalise on the good residents of Dalkeith. Generalisations and “lists of shame” can be misleading and hurtful.

Tony Buti is Labor MLA for Armadale