A report that recommended financial relief to more than a million Australians struggling on Centrelink payments is being downplayed by the government.
The Interim Economic Inclusion Advisory Committee (IEIAC) was established by the government to investigate JobSeeker payments and has advised, in a report released this week, that they are “seriously inadequate”.
The report also recommended increasing Commonwealth Rent Assistance (CRA) payments.
However, ministers are already hosing down speculation that it may increase JobSeeker payments in the Federal Budget next month.
The IEIAC made 37 recommendations and found that current JobSeeker payments fared poorly when compared to a range of other social support payments including the Age Pension, as well as income poverty measures.
A barrier to work
The committee found that “unemployment payments have fallen to such an inadequate level that they create a barrier to paid work”.
“It is also our view that our income support system should prevent poverty and financial distress to ensure people looking for paid work are not placed at a greater disadvantage by virtue of not having enough money to meet the essentials of life.”
The IEIAC recommends lifting JobSeeker to 90 per cent of the value of the Age Pension.
However, Treasurer Jim Chalmers made it clear the government would not commit to the recommendations.
“The Albanese government will always look to provide support where we can to those most in need, where it is responsible and affordable to do so, and weighed up against other priorities and fiscal challenges,” Dr Chalmers said in a joint statement with social services minister Amanda Rishworth.
“While we can’t fund every good idea, there will be measures in the May Budget to address disadvantage. This will include energy bill price relief that prioritises those on payments and pensions.”
The IEIAC recommendations would cost and estimated $34 billion over the next four years if they were implemented in full.
The IEIAC was established by the Albanese government as part of a deal with independent senator David Pocock to win his support on industrial relations reforms.
Senator Pocock was outraged at the government’s lukewarm response to the report, saying the results “could not be clearer”.
Forced to live in poverty
“It is unacceptable that – as one of the wealthiest countries in the world – so many people in our community, especially children, are being forced to live in poverty in this worsening cost-of-living crisis,” Senator Pocock said.
“It appears that this Labor government can find extra money for just about anything – from inland rail cost blowouts to submarines – but it won’t do more to protect the most vulnerable.”
Advocate group the Australian Council of Social Services (ACOSS) said the government must raise the rate of JobSeeker and related payments.
ACOSS CEO Cassandra Goldie said Dr Chalmers must act on these recommendations in the May Budget.
“With three million people living in poverty in Australia, there is no time for delay,” Dr Goldie said.
“The clear message from the committee is that JobSeeker and related payments are grossly inadequate. They entrench people in poverty and create a barrier to paid work for people looking for a job.
“The committee heard directly from people receiving these payments, including many who are routinely skipping meals, and forgoing essential medication and healthcare just to keep a roof over their head or pay their energy bill.
“In this Budget the Treasurer has the chance to reduce poverty and suffering in this country. He must act now.”
The committee found that the CRA rate did not take into account rent stress and the rising cost of living.
“At a time of rapidly rising rents, the 1.3 million Australian households receiving CRA are at greater risk of financial stress and poverty,” the IEIAC said.
“The committee recommends the government commit to increase CRA and reform its indexation to better reflect rent paid.”
Jobseeker payments are for people aged between 22 and Age Pension age who meet the income and assets test and Australian residence rules.
Payments range from $693.10 to $949.30 per fortnight depending on family circumstances.
According to the YourLifeChoices Insights survey, which surveyed almost 7000 readers, just 1.22 per cent were on Jobseeker payments.
Are you on JobSeeker payments or do you know someone who is? Do you think they are enough? Why not share your opinion in the comments section below?
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