The Federal Government’s own independent Economic Inclusion Advisory Committee has called for a substantial increase to JobSeeker and related income support payments as its top priority recommendation for the third year running.
The Committee again found lifting JobSeeker to 90% of the pension (from $56 per day to $74 per day) would substantially fix its adequacy. New research by Mandala shows that, for every dollar spent lifting the payment to 90% of the pension, an extra 24 cents would be returned to society by way of improved health and wellbeing outcomes, in addition to the major benefit delivered to people receiving the payment. Lifting JobSeeker would reduce government health expenditure, improve productivity as well as deliver vast benefits to the lives of people receiving the payment.
This year’s report includes new budget standards research by UNSW, showing income support payments fall short of essential costs, and that core costs in a remote community - Fitzroy Crossing - are 14% to 59% higher than the equivalent in capital cities.
The Committee recommended the Remote Area Allowance, which has not increased at all in 25 years, be lifted from $18.20 to at least $52.50 a fortnight, and calls for further reform to ensure the payment reflects very high remote prices.
This year’s report again urges the government to overhaul the employment services system to cease the harm being caused. It calls for the immediate cessation of automated payment suspensions and for the development of a new system that reflects natural justice principles and respects human rights.
The new report includes important insights into how inadequate income support payments may be affecting decisions by women to leave an abusive partner, with data showing that women on the lowest incomes may be more likely to face challenges leaving a violent relationship than other victim survivors because of lack of financial resources.
ACOSS CEO Dr Cassandra Goldie said: “As a member of this Committee, I urge the Federal Government to deliver its top recommendation and substantially lift JobSeeker, Youth Allowance and related payments.
“The benefits are crystal clear. It would improve people’s mental and physical health, it would improve wellbeing, and it would reduce poverty in one of the wealthiest countries in the world.
“It would also support women experiencing domestic and family violence, helping them to leave an abusive partner.
“The Committee again heard harrowing testimony from people receiving JobSeeker and related payments about how it is not possible to get by on such little income. People broke down in front of the Committee because of the severe stress they are under, not knowing if they can pay the next electricity bill and keep a roof over their heads.
“How many more times do people need to explain the distress and harm caused by living in poverty in one of the wealthiest countries in the world?
“The way to fix this, in ACOSS’s view, is to lift JobSeeker, Youth Allowance and related payments to at least the pension rate of $82 a day so that everyone can get through difficult times.”