Welfare simpler with big revamp
NEWSTART is dead, long live the JobSeeker payment. Australia’s unemployment benefit has been renamed and is being bundled together with other income supports.
The JobSeeker allowance will progressively fold seven types of assistance into one and replace Newstart as the main welfare payment for working-age jobless people.
Social Services Minister Anne Ruston said offering a single payment and set of rules for working-age people would make the welfare system simpler and easier to access.
Newstart and some wife pension recipients were automatically transferred to the new payment yesterday.
Sickness allowance recipients will be asked to attend transition appointments before making the switch.
Senator Ruston (pictured) said the vast majority of people transferred to the JobSeeker payment would not have to do anything, and would not notice any change to their income support, concession card or mutual obligations.
JobSeeker recipients will still receive the energy supplement and remain eligible for other payments.
The JobSeeker payment will be available to people who are looking for work, cannot work or study due to sickness or injury, or have recently lost their partner.
It comes as new polling shows about half (52 per cent) of Australians think the rate of the unemployment benefit should temporarily increase during the health crisis, so it’s in line with the aged pension.
For a single person the aged pension is about $300 more per fortnight than the JobSeeker payment.
The Australia Institute poll also shows about one in three Australians disagree with the temporary boost.
The Federal Government’s second stimulus package to stem the hit caused by coronavirus is expected to include income support measures.
But Treasurer Josh Frydenberg says the Government isn’t going to make longterm changes to the budget.
“This is going to be a temporary challenge, it may go for six months or more but it is going to be a temporary challenge,” he told ABC News.
“Our focus is on targeted measures using the existing tax and transfer system and making it as simple and as easy as possible for Australians to get that support.”
As outlined in the first stimulus package, welfare recipients and pensioners will get a $750 one-off payment to help ease financial stress caused by the virus.
Labor says casual workers, particularly in the hospitality and events industries, as well as sole traders, need a helping hand while the sector suffers because of limits on gatherings.