Raise income support payments, parliamentary inquiry urges Albanese
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.