For most Australians, to say that the last three years have been tough – particularly on the health and finance fronts – would be an understatement of mammoth proportions. But if the latest indications from Treasurer Jim Chalmers are correct, there may finally be some good economic news on the horizon for those receiving JobSeeker.
And it may be good news for some of Australia’s most vulnerable people – those who rely on Centrelink payments.
More specifically, Dr Chalmers has given tacit approval to the notion of an increase in the JobSeeker rate in the May budget.
Read: The surprise factor driving up your cost of living
The current JobSeeker rate for a single person with no children is $668.40 a fortnight. For those aged 60 or more, this increases to $718.60 after nine continuous months on the payment.
Factoring in the average cost of groceries, utilities and rent or mortgage payments, this comes across as a very small amount – an opinion shared by many of those attempting to survive on those rates.
Advocacy groups such as the Australian Council of Social Service (ACOSS) and the Brotherhood of St Laurence agree. Both have long campaigned for significant JobSeeker increases.
Through its Raise the Rate For Good campaign, ACOSS has called for the JobSeeker payment, which works out to just $48 a day, to be drastically increased. It recommends a rate of $73 per day.
Read: Why pension and JobSeeker rates must be increased
Some believe such an increase would be hard to justify. ACOSS chief executive Cassandra Goldie says an increase of that magnitude is needed “urgently”.
“Even before the cost-of-living crisis, income support payments weren’t nearly enough to cover basic expenses,” she says.
“But in the last 12 months, rents have risen by 18 per cent and food by about nine per cent. People on income supports are worst affected by these rising costs.”
Ms Goldie’s sentiments are echoed by Swinburne University social sciences professor Kay Cook. She says it is “indefensible” that a payment intended to ensure people don’t fall into poverty is set below the poverty line.
“There is no moral justification for having an income safety net not saving you from anything,” she says.
According to ACOSS’s 2022 Poverty in Australia Snapshot, the poverty line is $489 a week for a single adult. That equates to $978 a fortnight – well above the $668.40 currently provided by the government.
Read: How not to fall foul of this Centrelink rule
When asked about a JobSeeker increase, Dr Chalmers says any such reforms needs to be weighed against fiscal challenges facing the nation.
“Clearly, we will do what we can when we can,” he says.
Such words sound like a responsible government. They ring a little hollower considering the Albanese government is steadfast in its commitment to Stage 3 tax cuts, which will reduce the marginal tax rate for those earning $45,000 to $200,000 to 30 per cent.
The cost of those cuts? According to the Parliamentary Budget Office (PBO), by the end of the decade it will be almost $30 billion a year.
And the beneficiaries of the tax cuts? The same PBO estimates indicate that in 2024-25, the top one per cent of income earners will receive the same total benefit as will the bottom 65 per cent.
That provides some perspective for those who see the ACOSS calls as excessive. Whether such perspective will influence Dr Chalmers’ decision will be revealed when the next Federal Budget is delivered.
Should the JobSeeker rate be increased? What approach should the government adopt in the May Budget? Why not share your thoughts in the comments section below?
I think the government is stuck with keeping the tax cuts for the well off. They were an election promise and Albanese is determined not to break his promises. But IMO they should because these cuts were an LNP policy of no benefit to the country.
Perhaps if these cuts are retained the government could offset them by scrapping some of the concessions which mainly benefit the well off, like the 50% capital gains tax concession.
While Albanese has a PLAN – His Treasurer – who has a Doctorate in Union Philosophy – and has no idea about how to even “spell “BUDGET”, Low income earners and Pensioners go further down the plug hole. Albanese wastes Billions of Dollars on idiocy like ‘The Voice’, tripping all over the place and wasting billions propping up Victoria’s Labor wasteful government, our health system is breaking down, our children and Grandchildren, suffer at the hands of an idiot Education Minister, and then there is Chris Bowen – and the tooth fairy!!
Peter, you have posted this info previously. Yes The treasurer has a PhD in Politics, but you are totally ignoring the fact that he also has Bachelor of Commerce.
If you do not know what that is, then google it, but it does give him a background and qualifications in Commercial Economics.
Totally agree with past comments. It just proves that promises to the wealthy totally outweigh the promises that they would help those in need. The gap between the wealthy and underprivileged gets even further apart. So much for a government for the people. I think all the political parties prove that they could not care about anybody but themselves.
This question has come up time and time again here on the forum, and the general consensus seems to have been that of course the basic jobseeker payment needs to be increased. Along with the aged pension and maybe other payments, nobody should be expected to survive on less than the poverty line. This basic amount was determined a long time ago to be the least amount anyone could survive on without their physical and mental health being unreasonably impacted. Maybe if the top end of the market honoured the responsibility inherent in their privileged positions to assist those less fortunate the situation may improve a little all around. But of course, nothing is as good as ensuring their are enough jobs available for all those who are capable of working. No matter what system we have, there are going to be grumbles from some in society but the situation as it is just cannot continue. At present, the responsible citizens, either in or out of work are the ones who are least likely to complain yet it is those who are probably the people who do the most to try and alleviate suffering for others. I know many people who are trying to survive on far less than the poverty level yet who somehow manage to assist others either financially or in a voluntary unpaid capacity. They generally view this assistance as no more than their duty towards their fellow citizens, whom they generally see as even less fortunate than themselves.
By all means have a living wage for unemployed, but how does that solve unemployment? There is already too much encouragement to not work. Maybe raise the minimum wage and lower taxes rather than subsidise people who don’t want to work. I have this discussion with people all the time and they say why should they work and pay tax when they can get more on benefits?
Meanwhile pensioners who are drowning in cost of living hikes continue to fall behind in a reactive system that sees them constantly behind the 8-ball, which fails to recognize they have higher health costs, and expensive fuel prices on older vehicles they can’t afford to replace. Aged Australians are less able to do their own home maintenance so pay through the nose for tradespeople, and have fewer opportunities to add a little to top up the meagre amount the government sees fit to pass on to them after years of paying tax including their contribution to the AP. At the same time, they are seeing the Government winding back Medicare, eliminate Bulk Billing by not paying Doctors a realistic fee and allowing many essential PBS medicines to become unavailable making expensive non-PBS medicines the only option. Consider a medication that was $2.50 or free once you hit the threshold on PBS and the alternative that is now $180 a month and not caught by any threshold. All the government does is blame others and do nothing to help the Aged Pensioner. Seems they want us to just curl up and die or go away. Successive governments have wanted to take money off older Australians through various means including the dreaded death duty or inheritance tax. Seems they have found a simpler way to take it by stealth, just like they did when they took the money from the Pension Fund (Welfare Fund). All those incompetent politicians who have allowed themselves to achieve this should be very proud of themselves. Maybe the public should take their pensions away and see how they react.
I totally agree, being a Part Pensioner who has just lost my partner of 24 years to her battle with Cancer. I now find that I am probably about to loose my Pension because my CSS (Govt) Pension is now right on the upper limit of the Income test. I may now loose not only my Pension Card, but also the Health Benefits and other Concessions. I was in Commonwealth of Australia employment for 49.5 years, and only retired due to Medical Problems.
Dont worryabout the dole $48 a day I am an old age pensioner married but my wife too young to claim and I only get $55 a day
The dole is there for assistance while not having employment but most of the recipients are on it for years. Businesses are closing or reducing hours because they can’t get workers – well here is a thought! get the unemployed out in the work force regardless of title and use that money for aged pensions who have worked hard all their lives and contributed to the success of Australia. Instead of bringing in migrants, train the unemployed either through the workforce or going back to college. It makes sense to me – but I’m only a retiree!!