As prices and unemployment rises, the Federal Government must go beyond routine indexation and substantially lift income support payments to strengthen our safety net and help people on the lowest incomes, ACOSS says.
“With the conflict in the Middle East increasing fuel costs and risking rises in the price of groceries and energy, Australia needs a strong safety net that protects people from poverty,” ACOSS CEO Dr Cassandra Goldie said.
Pensions and allowance payments like JobSeeker increase today due to routine indexation that occurs twice per year. This routine indexation delivers a CPI increase of just $7.55 per week, or less than $1.10 a day for a single person living on JobSeeker.
“JobSeeker will go up to $408.75 per week, which is less than the cost of renting a room in most capital cities, and well below the poverty line,” Dr Goldie said.
“Right now, people are scared about what lies around the corner. People in precarious work are worried about losing their job, and people receiving income support already choose between eating food and keeping a roof over their head. Unemployment has just risen from 4.1% to 4.3%, representing an additional 35,000 people. Since interest rates began to rise in 2022, a total of around 150,000 more people are now unemployed.
“We must not forget that JobSeeker is just 43% of the minimum wage.
“The government must build on the real increases it delivered in 2023 and lift JobSeeker, Youth Allowance, Parenting Payment and related supports to at least $600 a week - just under two thirds of the minimum wage - to ensure people can meet their needs.
“Of course every dollar helps when your income is so low. But rising unemployment and global conflict contributing to inflationary pressures make it even more important for Australia to ensure our safety net sufficiently supports people who bear the brunt of the economic fallout.”
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Lauren 0422 581 506