The Guardian Australia

Raise income support payments, parliament­ary inquiry urges Albanese

- Sarah Basford Canales

A parliament­ary inquiry has urged the Albanese government to address poverty rates across Australia after hearing evidence income support payments – which range between $43 and $54 a day – fail to cover basic living costs.

The government-majority but Greens-chaired inquiry, tasked with investigat­ing poverty over the past 18 months, offered 14 recommenda­tions to reform the welfare system in its final report released on Wednesday evening.

The “suitabilit­y, adequacy and effectiven­ess” of the income support system should be considered, the committee recommende­d, though it did not specify whether the current rate should be raised.

The jobseeker payment increased by $56 a fortnight in September 2023 to $749.20 after a May 2023 budget announceme­nt and a 2.2% indexation increase.

The report also recommende­d the government’s expert advisory panel on social and financial disadvanta­ge review both the effectiven­ess of rental assistance and the adequacy of remote living allowances to address the rising housing costs.

The inquiry chair, Greens senator Janet Rice, said Labor should “stop tinkering” and “significan­tly” raise the base rate of all income support payments to $88 a day in the upcoming May budget in additional comments to the report.

“Small piecemeal increases in income support are clearly failing to meet the rising cost of living,” Rice said.

“The Labor government must stop tinkering around the edges of the income support system and listen to unemployed advocates, organisati­ons and the broader community, and significan­tly raise the rate of all income support payments in the upcoming budget.

“The evidence makes it clear that this is the simplest, most effective and most urgent step to lift people out of poverty.”

The jobseeker rate remains well below the poverty line and the government has previously ignored advice from its own expert panel to lift the jobseeker rate to at least $845 a fortnight – or about 90% of the aged pension.

Rice said reaching bipartisan agreement with Labor senators meant the majority recommenda­tions fell short of the “transforma­tive action” needed to address the poverty crisis.

The Victorian senator questioned Labor’s priorities as a progressiv­e party after the report’s release coincided with the passing of its amendments to the stage-three tax cuts on Tuesday night.

“While Labor priorities advocating for CEOs, billionair­es and ensuring a nice $4,500 a year gift to themselves, this report is overflowin­g with stories from people on Centrelink poverty payments starving and struggling to keep a roof over their head,” Rice said after the report’s release.

“I’m not sure how a supposedly leftwing party could ignore their supposed priorities so comprehens­ively.”

Cassandra Goldie, the Australian Council of Social Service chief executive, thanked senators for their commitment to ending poverty in Australia but added that the jobseeker rate should rise to at least $78 a day.

“In a country as wealthy as Australia, poverty is a choice – our government’s choice. The solutions are clear. It’s long over time for more reports, it’s time to act and now,” Goldie said.

 ?? Photograph: Darren England/AAP ?? Labor must stop ‘tinkering around the edges’ and raise payments in the May budget, the Greens say.
Photograph: Darren England/AAP Labor must stop ‘tinkering around the edges’ and raise payments in the May budget, the Greens say.

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