In a time when the cost of living is soaring and many Australians are feeling the pinch, the recent decision by both major political parties to reject an increase in Centrelink payments has sparked a heated debate. The ABC’s Q&A program became a platform for this discussion, highlighting the plight of those ‘doing it tough’ and the call for a much-needed boost in social security payments.
Despite the regular indexation of Centrelink payments to keep up with inflation, many Australians, particularly retirees and JobSeeker recipients, argue that these adjustments fall short of meeting the escalating expenses of daily life.
Marge, a retiree who voiced her concerns on Q&A, encapsulated the sentiment of many older Australians.
‘How can the government expect us to believe that they know everyone is doing it tough when the latest pension increase for a couple equates to 25 cents per day each?’ she said.
After decades of contributing to the economy through taxes, retirees like Marge say it feels unjust that they must now count every cent in their later years.
‘Every bill we pay has risen significantly,’ she added. ‘Actions definitely speak louder than words in this situation.’
The situation is equally dire for JobSeeker recipients, who recently received an increase of only $3.10 per fortnight, an amount that Perth resident Damien pointed out wouldn’t even cover the cost of two litres of milk.
The debate over Centrelink payments is not just about the financial figures; it’s about the real impact on people’s lives. Economist Nicki Hutley shed light on the broader implications, citing recent modelling that shows investing an extra dollar in JobSeeker could result in a $1.25 return to the community. This investment translates into healthier individuals, reduced government payments, and improved productivity—a win-win scenario that is currently being overlooked.
The government’s Economic Inclusion Advisory Committee has recommended that JobSeeker be increased to 90 per cent of the Age Pension, which would raise the fortnightly payment from $781.10 to $942.39. This significant increase could alleviate the financial strain on many Australians living below the poverty line, struggling to afford rent, meals, medicines, and educational needs for their children.
Despite these compelling arguments, politicians from both Labor and the Coalition have maintained their stance against raising Centrelink payments. Clare O’Neil, housing and homelessness minister, stated that Labor would not support another boost for JobSeeker, while Michael Sukkar, shadow social services minister, expressed the challenges of increasing social security payments without raising taxes.
However, Richard Denniss from The Australia Institute offered a different perspective, suggesting that the funds to support the country’s most vulnerable could be found by cutting the $15 billion a year in fossil fuel subsidies and reevaluating expensive defence projects like AUKUS. Denniss’s comments highlight the notion that when something is a priority, a wealthy country like Australia can find the resources to fund it.
As the debate over Centrelink payments continues, it’s clear that the issue affects many Australians in different ways. With political leaders maintaining their positions and economists offering alternative solutions, the conversation remains complex and multifaceted.
What are your thoughts on the current Centrelink payments and the proposed changes? How does this issue impact you, and what changes would you like to see? Please share your thoughts in the comments section below.
The last indexation rise was pathetic $4.60 doesn’t cover any of the increases to food, energy, or insurance costs. Both parties are out of touch with reality, a major overhaul is long overdue – either more frequent indexation or changes to how increases are calculated is called for. The politicians can find the money to give themselves huge increases but can’t find the funds to support the most disadvantaged in our community. Disgusting
Wrong both parties just don’t care. It’s our fault because we have not complained enough to make it an election issue. The squeaky wheel gets the oil is so true.
$942 for a pensioner? I wish, not sure where these figures come from, but if jobseekers got 90% of my age pension they would have to take a cut in what they get now. There hasn’t been a government that has looked after pensioners since I’ve been on the pension, which is 16 years. Some workers have had increases up to 20% many have had increases of between 5% and 15%, other groups have had significant increases ie pre school childcare, I don’t mean to start an argument between different groups but fairness should come into the debate. I come from an era when I worked overtime I paid as much as 60% tax on my overtime earnings, this was also a time with interest payments on mortgages upto 17%, we did the hard yards when we worked to support the country, we now reap the crumbs.
Couldn’t agree more. Same here. We live in community housing and everyone thinks we get rent relief. Well, we do but the SA government takes it off us. I’m sick of hearing how Mr Malinouskas is doing so much better than the other states with building houses but how do they do it? Taking the rent relief of those who need it the most. That’s how. This has been going on since about 2012 and no matter what government is in, they have done the same and no one is willing to do anything about it no matter how many letters I send. They must be really proud of themselves. Imagine the millions they have raked in.
Think they are asking a 5year old to calculate to CPI each year as it is soooooooooo out of touch with reality. These politicians, who sit in their mansions, living off us, the people, telling us the CPI is only worth a $4.60 increase in pension. That is an insult to our intelligence. I would like to see them, the politicians spend 6 months living on the aged pension alone, paying rent, we pay $880 a fortnight, water, gas, filling their cars with fuel, doing maintenance on their cars, buying new tyres etc, insurance costs, groceries, phone account, maybe going out occasionally….. not to mention being clothed and having shoes, to name just 2 items needed to leave the house……… and so the list of costs goes on. We make ends meet by doing dog sits for others, but really at 79 year old, should we have to be doing this?????????
The method the government uses to calculate cost of living for pensioners is clearly flawed because real cost increases are multiple times what their system says. Many things such as home insurance have become unaffordable for pensioners like us so we have dropped them. Our home insurance premiums had been rising by about 20% a year for several years rising from $700 pa ten years ago to $4,000 pa now despite us never having lodged a claim. So we are no longer covered by home insurance and many of our elderly friends are also being priced out of cover.
The other gripe I have is that each member of a couple is paid much less than the single rate of pension. These days many people live their own lives with their own circles of friends and activities. Couples do not share the cost of everything so it is plain wrong and discriminatory to pretend that two can live as cheaply as one and pay us less. An equitable pension would be paid at the same rate for everyone without regard to living circumstances.
Totally agree with you David. It is about time all politicians thought more about the people they represent not their own living standard. All Centrelink payments should reflect the actual indexation not a percentage of it.
The latest pension increase just demonstrates how out of touch politruly are. They use the excuse they can not find the money to raise the pension. However they have no problem finding hundreds of billiona to buy submarines or to give the rich in generous tax deductions. Here is an idea…reduce the salary of parliamentarians by over 50%. They are cureently on $200k+ a year. Perhaps if their salary was more in line with the average Australian worker they might understand the problem better. Or better yet make them live on the pension.
The billions for the submarines are something we may never see, especially with Trump back in power. Cancel AUKUS and use that money to properly support the most disadvantaged
Sorry my comment went under here instead of Daryl Foxcroft.
Great comment but even if they lived on the pension, the perks they get would still give them the amount they pocket the same. I’ve never been lucky enough to leave a job, take another job and still get paid from the last job. What a joke. If my facts are correct (and it is is only what I’ve read), the likes of Julie Bishop will get $188,000 for the rest of her life – and that’s just one politician.
That $188,000 is her Superannuation paid at the rate commensurate with the Salary that she was paid when a Minister !!
Lucky her.
Why is the state pension so much less than the minimum wage.
Living on the aged pension is becoming a joke to make ends meet u have to have cheapest type of meats and the cheaper type of vegetables so u can pay ur rent power gas etc and dont even thing about entertainment as that’s totally out of the question just so u can afford to buy or gandchildren and family presents for special occasions while the people in government either side live very comfortably at our expense and never ever have to worry about money for anything!! It’s just got so ridiculous to people who have worked all their lives and now are living on a pittance!!!! The government needs to listen to the people and start doing the right thing but being them this will never happen sadly!!
Both parties do not care about us Pensioners at all. I am on a DIsability pension which has not increased at all. Childcare workers have received an increase but not us. It’s a disgrace. I won’t be voting for either of them.
The figures quoted in the article are the couple rate per fortnight. We singles receive 66.7% of the combined couple rate, and where are supposed to spend this $4.60 ($5.40 with rent assistance) increase? My phone bill has just gone up by $5 per month, and my extras cover by 30 cents per fortnight. Thus in a typical month, I’m paying $5.60 out of my paltry $10.80 increase. What am I supposed to do when my insurances (car, CTP, and contents) are due to go up by approx $50-75 each per year? Where on earth am I supposed to also find an increase in my rent? I’m skating on very thin ice as it is, and know that I can’t afford any increases. I put aside funds for my electricity account each fortnight, so that I know I can afford the bill when it arrives. This could mean that I’d be ‘living on the street’ in August (at the end of my current lease), with no end in sight to my nearly 9 year wait for NSW Housing accommodation. The average wait time is approx 5-6 years – Huh!
I’m not getting any younger, either.
I’m a retired bookkeeper, and use Excel to forecast my budget, and MYOB to record each expense, just to keep an eye on what & where I spend my meagre pension. I don’t have any super, as it was mandated to start the day I left my last full-time job (01/07/1992).
Same here. We budget down to the last dollar. As I have commented earlier, we live in community housing and get the rent relief provided by the commonwealth government – the south Australian government have taken it off us since around 2012 and we don’t see a penny. Don’t come to south Australia if you are a pensioner and rent. You will lose.
What irks me is that every dollar paid to pensioners goes back into the economy as there is little room to save. We are now going backwards. Who cares ? 36,000 extra public servants, most working from home get an increase wage to counter inflation. Pensioners, the new poor.