Legislation announced today offers a ray of hope for more than a million Centrelink recipients, with older Australians also set to benefit from the payment boost.
From 20 September, the JobSeeker rate will rise by $56 fortnightly. The boost comprises the $40-per-fortnight increase declared in the Federal Budget along with an extra $16 per fortnight in line with indexation.
JobSeeker recipients aged 55 and over will also receive a substantial bump, with the government reducing the qualifying age for higher rates from 60 to 55 years for those who have received the payment for nine consecutive months.
The rate for JobSeeker payments will reach $749.20 per fortnight. For Aussies aged 55 and over, it will be $802.50.
Youth Allowance, Partnered Parenting Payment, Austudy, ABSTUDY Living Allowance, Youth Disability Support Pension and Special Benefit payments will also rise $40 per fortnight.
Around 1.1 million households will benefit from a 15 per cent bump in Commonwealth Rent Assistance, with average increases estimated at $24 per fortnight.
The Greens wanted the income support rate lifted to the poverty line, with an increase to $88 a day ($1232 per fortnight). The party’s calls were rejected by the government and the Opposition.
Greens Senator Janet Rice said that with the cost of living biting so many households right now, the rejection was equivalent to parliament condemning vulnerable people to poverty.
“The increase works out to be around $4 a day, which is less than a cup of coffee and won’t help anyone pay their rent,” says Senator Rice.
“Labor ignored an opportunity to make a meaningful difference in lifting Australians out of poverty and building a strong social safety net for everyone who needs it.
“Which is absolutely bad for their wellbeing, their health and their ability to get a job – if you’ve got people living in poverty, you’re not in a position to be able to get a job.
“It is absolutely shameful.”
Social services minister Amanda Rishworth, however, says that these payment increases will deliver aid to nearly two million Australians.
“JobSeeker and other income support payments are about helping those in our community who need it for a period of time,” says Ms Rishworth.
”More broadly, it is important to remember these income support changes work alongside other cost-of-living relief in the budget, including help with power bills, record investment in Medicare bulk-billing and cheaper medicines.”
Age pensioners will need to wait for the new indexed Age Pension rate. Early indications based on the CPI increase are a rise of $23 per fortnight for a single pensioner ($1087 per fortnight) and, for couples, a $35 increase, or around $1639 per fortnight.
Are you happy with the announced boost? Should the government bring payments to the poverty line, or do you think this will deter people from finding employment?
Also read: Could the Opposition’s JobSeeker plan be better for older Aussies?