Disappointing news for those on Centrelink unemployment benefits

 

The Interim Economic Inclusion Advisory Committee was created by the Albanese Government in December 2022.

Membership of this committee is intended to be up to 14 members, including a Chair, and include a mix of social security academic experts, representatives from key relevant advocacy organisations, unions, business peak bodies, the philanthropic sector and economists.

CHART: Interim Economic Inclusion Advisory Committee, 2023–24 Report to the Australian Government, p.90

Its purpose is to provide non-binding written advice on economic inclusion, including policy settings, systems and structures, and the adequacy, effectiveness and sustainability of income support payments ahead of every Budget.

The Interim Economic Inclusion Advisory Committee’s April 2023 InterimEconomic Inclusion Advisory Committee, 2023–24 Report to theAustralian Government made 37 recommendations in this 97 page document which covers aspects of: adequacy of working age payments; full employment objective; addressing disadvantage in places where it is concentrated; removing barriers to economic inclusion – families with children; and, advice on legislated measures on economic inclusion and poverty reduction.

The first three recommendations are:

Recommendation 1

The Government commit to a substantial increase in the base rates of JobSeeker Payment and related working age payments as a first priority.

Recommendation 2

The Government commit to increase Commonwealth Rent Assistance and reform its indexation to better reflect rent paid.

Recommendation 3

The Government commit to a timeframe for the full increases to be implemented, if increases are to be staged.

In the joint media release of 18 April 2023, Australian Treasurer & Labor MP for Rankin Jim Chalmers and Minister for Social Services & Labor MP for Kingston Amanda Risworth signalled an intention not to support the first recommendation in the 2023-24 financial year and did not give hope that all three of the aforementioned recommendations will become future priorities anytime soon.

BACKGROUND

Interim Economic Inclusion Advisory Committee, 2023–24 Report to the Australian Government, excerpt, pp3-4:

Introduction

Adequacy of income support

The Committee focused first on the adequacy of income support for more than one million people in Australia who receive working age payments like JobSeeker or Youth Allowance. All indicators available to the Committee show current rates of these payments are seriously inadequate, whether measured relative to the National Minimum Wage, in comparison with pensions, or against a range of income poverty measures. People on these payments face the highest levels of financial stress in Australia. Committee members heard from people who live on income support having to choose between paying for their medicine or electricity bills.

The Committee recommends the Government, as a first priority, commit to a substantial increase in the base rates of the JobSeeker Payment and related working age payments. Income support should better value unpaid caring work and support those who cannot be in full-time paid employment, including due to illness, disability or partial capacity to participate.

The Committee also found the current rate of Commonwealth Rent Assistance (CRA) to be inadequate. 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

Committee recommends the Government commit to increase CRA and reform its indexation to better reflect rent paid.....