The Federal Government must urgently lift income support payments as today’s routine indexation falls far short of what people need to afford basic necessities, ACOSS said.
From today Youth Allowance for a single person living away from home is only going up by $6.95 a week. This lifts Youth Allowance and Austudy to just $338.60 per week, which is 36% of the minimum wage.
These increases do little to offset soaring rents, food prices, energy bills and healthcare costs faced by people on the lowest incomes, leaving millions unable to afford basic essentials.
“While every extra dollar helps, these small increases barely make a dent in the cost of living pressures people face every day,” ACOSS CEO Cassandra Goldie said.
“Young people and students are living on payments that are well below the poverty line, sitting at around one third of the minimum wage. They’re cutting back on food, skipping important medical appointments and falling behind on rent.”
Youth Allowance and Austudy are adjusted for inflation on January 1 each year. In addition to being substantially increased in real terms, ACOSS calls for these payments to be indexed every six months, in line with JobSeeker and pensions. Indexation should also be in line with wages as well as prices so payments do not fall behind community living standards.
ACOSS calls on the Federal Government to lift JobSeeker, Youth Allowance, Parenting Payment and related supports to at least $589 per week so people can cover the basics.
“In a wealthy country like Australia no one should be forced to live in poverty because social security payments are set too low. The solution is clear: raise the rate. Without meaningful increases, people will continue to be pushed into deep hardship,” Dr Goldie said.
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To arrange an interview, contact: Charlie Moore: 0452 606 171