The Federal Budget delivered last night has failed to provide cost-of-living relief where it is most needed: to the many thousands of Australians who are living off social security payments that remain set below poverty-level rates.
“In their public campaigns, the Government has acknowledged they understand the importance of Australia’s social security system; that it is something worth protecting,” says Economic Justice Australia (EJA) CEO Kate Allingham. “Yet once again, people who receive working-age Centrelink payments have been left out of the Government’s vision for a fairer and more inclusive Australia.”
Several measures intended to provide financial relief have been included in this Budget, in the lead-up to the so-called ‘cost-of-living’ election:
- $150 energy rebate
- Cutting the cost of medicines
- Cutting student debt
- Targeting of overpriced goods in supermarkets
However, these measures will do little to provide relief to those who rely on Australia’s social security system.
“There are more than 1.5 million Australians who are living off working-age payments such as JobSeeker, Youth Allowance and parenting payments. As an example, the base rate for JobSeeker is $390.55 per week. Routine indexation that took place last week increased this by $1.55 per week. That is just not enough money for a person to live on,” says Ms Allingham.
“Carers, parents, students, people living with a disability or illness, volunteers, people in crisis, people who can’t work, low-wage workers or those who are looking to find employment – these are people that rely on our social security system. We should be investing in a system that financially supports people when they need it.
“It is an act of cruelty, to put out a Budget promising to assist those struggling through the cost-of-living crisis and yet to completely ignore those most in need of economic relief.”
Experts and advocates have repeatedly sounded the alarm on working-age payments set at rates no one could reasonably be expected to live on. In March alone, two separate reports – from the Economic Inclusion Advisory Committee (EIAC) and the Grattan Institute – called for a substantial increase to JobSeeker rates, calling it an ‘easy win’ for any Government that is serious about addressing rising costs of living.
In addition to increasing the rates of JobSeeker and related payments, EJA also advocated for the following measures to be included in this Budget:
- An increase to the rate of Remote Area Allowance, and for this payment to be indexed to keep pace with inflation.
- Reform to particular elements of the social security system relevant to family and domestic violence, to better protect victim-survivors.
- $5 million per year in specialist funding to social security legal services.
By committing to these reasonable asks, the Government could have dramatically improved the lives of millions of Australians with one Budget. EJA today expresses disappointment that the Government has ignored advice, and has chosen instead to maintain poverty-inducing payment rates.
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Media contact: Kirsty Sier | 0435 075 085 | kirsty@ejaustralia.org.au