In the face of adversity, Australians like Peter Carnegie are opening up about the challenges of relying on Centrelink, especially in the wake of personal tragedy. Carnegie, a single father from Sydney’s East Gardens, has been thrust into the spotlight, sharing his story of intergenerational struggle following the death of his wife to cancer.
Carnegie’s situation is a stark illustration of the challenges faced by many Australians who rely on social security. Despite working full-time and receiving the Family Tax Benefit, along with his eldest child’s JobSeeker payments, Carnegie has found it nearly impossible to make ends meet. The financial pressures are compounded by his responsibilities as a single parent to an eight-year-old and a 22-year-old, who was unable to work while caring for his sick mother.
The Carnegie family’s plight is not unique. A recent poll of nearly 5,000 Yahoo Finance readers identified increasing Centrelink payments as the top issue for the 2025 Federal Budget. However, recipients like Carnegie saw no relief in the latest budget announcements. ‘If we were living in the place we were living before, I’d be spending 70 per cent of my income on rent alone,’ Carnegie lamented during an appearance on ABC‘s QandA program. The list of expenses is relentless: rent, electricity, gas, food, petrol, and car insurance.
The struggle to find employment for his eldest son adds another layer of difficulty to Carnegie’s life. After his wife’s diagnosis, his son attempted to start a bridging course at university but couldn’t continue due to the emotional toll. Now, with his mother gone, the young man’s role in the family has become even more crucial, as he helps with his younger brother’s school and extracurricular activities while their father works.
Living with his parents has provided some financial reprieve, as they do not charge him rent and assist with household bills. Yet, even with this support, Carnegie still spends $300 to $400 per week on essentials, leaving no room for unexpected expenses. ‘How can I survive?’ he asked, voicing the desperation felt by many in his situation.
The stories of hardship are echoed across the nation. Centrelink recipients have shared their struggles with Yahoo Finance, detailing how the payments have failed to keep pace with inflation and the rising cost of living. While Centrelink payments are adjusted twice a year, many argue that the increases are insufficient. Age Pension recipient Ken and JobSeeker recipient Grant have both expressed their frustrations, with Grant revealing the extreme measures he takes to save money, including eating infrequently and avoiding the use of air conditioning, which has led to heatstroke.
The government’s response to these concerns has been tepid. Federal industry minister Ed Husic acknowledged the challenges but pointed to Labor’s increase in JobSeeker and changes in Centrelink indexation as significant steps forward. However, he conceded that these measures alone are not enough to lift many Australians out of financial hardship.
As the nation approaches the federal election on May 3, both major parties have made promises aimed at addressing the cost of living. The Coalition has pledged to reduce the fuel tax and assist young people in buying homes, while Labor has promised energy rebates, income tax cuts, child care subsidies, and support for apprentice tradies.
For single parents like Carnegie, these promises offer a glimmer of hope, but the reality remains that the struggle is ongoing. The intergenerational challenges faced by families on Centrelink are a reminder of the need for a more robust social safety net and targeted support to help Australians navigate the complexities of modern life, particularly in the wake of personal tragedies.
What would a more supportive safety net look like for you? How can the government better support families facing financial hardships? Share your perspective in the comments below.
Also read: The Centrelink workaround that could shield age pensions from cuts
Still spending 3 to 4 hundred dollars a week! What is he spending it on? He is not paying rent so I would like him to explain what he is spending it on.
I’m sure Carnegie is thrilled that the government is subsidising childcare for families earning over half a million dollars a year! If that’s Labor’s idea of helping with the cost of living, we should show them the door. A $150 electricity rebate, on the other hand, might provide some minimal help to pensioners, but compared to the massive cost increases Labor’s stupid failed renewables nonsense is causing, it’s a pathetic pittance. And let’s not forget we are paying for through taxation that is constantly rising.
Kick this incompetent mob of liars out. Can we please invite Donald Trump to take over for a few years. I don’t think Dutton is up to the task of fixing the mess, especially since Labor is making sure any LNP Government that might be elected inherits a car from which the wheels and motor have been removed.
The tendency straight away is to blame the government and want to vote against them. Realistically, the coalition is not going to increase income support payments. It was the coalition that brought us Robodebt and with it came deaths.
Some factual information here.
1. Half of Jobseeker recipients have an underlying medical condition. Many cannot get the Disability Support Pension.
2. The age pension eligibility is now at age 67. There are many who cannot work any longer who are waiting for age pension eligibility.
3. The largest cohort on Jobseeker are over fifty years of age. Despite this there are many who spout the narrative that Jobseeker recipients are either surfing or X Box playing youth.
4. There are compliance requirements which apply to people on Jobseeker. They have certain minimum activities that must be reached.
5. Of the OECD ( Organisation for Economic Cooperation and Development) we have one of the lowest pension, and unemployment payments. This is assessed based on a country’s Median and Mean Incomes.
6. Let’s look at amounts. The maximum pension for a person on single rate is $1149 per fortnight or $575 per week approximately.
7. Maximum Jobseeker is $781.10 per week or $390 per week. For those over 55 it’s $836.50 per fortnight, provided they have been on payments for 9 months or longer.
8. For those on Youth Allowance the payments are lower. It’s $663.30 per fortnight.
9. Maximum Commonwealth Rent Assistance is $212 per fortnight. That’s not per week that’s per fortnight. To get that amount rent paid must be $432.20 per fortnight. Who gets rent that low.
That means a person paying $800 per fortnight rent would get $432 assistance, having to pay $368 from the Jobseeker payment, depending on age either $781 or $836. That would leave $413 per fortnight for transport fares, petrol, electricity, food, clothing, footwear, etc.
10. Median income in Australia, remembering it’s the half way point is $65000 in 2022 or roughly $1250 per week.
11. The poverty line has several definitions but the most common is 50% of median income, in this case $625 per week or $1250 per fortnight.All income support payments – pensions, Carers, Jobseeker and Youth Allowance are under the poverty line.
12. The pandemic saw these payments raised. They lifted people out of poverty and helped save the economy and many small businesses.
Raising incomes for the poorest has a beneficial affect. They spend differently to the wealthy. Money goes on a haircut, benefiting a small business.It goes on medicines and better quality food.
Wealthier people with more money spend differently, on consumer goods, on electronics, on cars and overseas holidays. That money goes overseas. The economy benefits less. A point I frequently make, we do not even own or manage the aircraft and ships used to import goods.
Sadly there is a tendency for some to scapegoat or bash the poor, it’s called downward envy.
It would be better to direct the anger upwards.
More facts the top 10% own 57% of total wealth. The bottom 90% which includes most of us on this site own 43%. The top 1% own about 20% of all assets.
Lady years AFR Rich List the top ten Australians own $222 Billion in assets.
The story above is very common, it’s distressing but it’s sad.
There must be an increase in all payments.I am disappointed at the Albanese Government. Realistically a coalition government will not address these issues.
Their recipe is to cut.
I made an error on my above comments. I mentioned in one example, rent assistance at $432. That’s the amount required to get $212. So someone paying $800 per fortnight rent would get $212, meaning they would have to still cough up $588 from their income.
I have used single rates, the welfare system is complex. Couples get a different rate, it’s not double the single rate.
Dependents would get a bit more.
In Peter Carnegies example he stated what his expenses are including petrol, food, utilities, car insurance. He is working.
We live on a world where two income households are struggling, how and why do we expect others to live on such a pittance.