The chorus calling for a lift in Australia’s pathetically low Newstart Allowance for unemployed workers (the ‘dole’) is getting too loud to ignore.
In recent times, we have witnessed a huge cross-section of industry groups and commentators calling for Newstart to be lifted, including:
- Deloitte Access Economics senior partner Chris Richardson;
- the Business Council of Australia;
- Former Treasury Secretary, Ken Henry;
- Professor Peter Saunders from UNSW;
- Former Liberal leader, John Hewson;
- Former Prime Minister, John Howard;
- Business lobbyist, Heather Ridout;
- independent senators Tim Storer and Derryn Hinch;
- The Australian Council of Social Service;
- The Australian Local Government Association; and
- The Australian Greens.
Yesterday, the Salvation Army joined the conga line, releasing a report arguing that “It’s time to kick start Newstart”:
The Salvation Army is urging the Federal Government to reconsider its decision not to increase the Newstart allowance after research has revealed the devastating hardship many Australians are facing.
The 2018 Economic and Social Impact Survey (ESIS), a survey of 1,267 people who call on Salvation Army services, has found the average Newstart recipient is living on just $17.00 a day after accommodation expenses*…
The Salvation Army’s Major Paul Moulds says the research confirms the Federal budget failed Australians doing it tough.
“It is simply inhumane that corporations and wealthy households are handed a tax cut, while the most disadvantaged and marginalised people in this country continue to be ignored,” Major Moulds said.
“It is widely acknowledged it will take a minimum increase of $75 a week just to ensure people can live on the poverty line – let alone above it.”
The Newstart Allowance has not increased in real terms (i.e. above the Consumer Price Index) since 1994. This means that people who are unemployed have not shared in increases in living standards received by the rest of the community for more than 20 years:
The below chart from ACOSS highlights the disconnect more clearly:
Whereas The Australia Institute shows that Newstart will soon fall to 30% below the poverty line – the lowest level on record:
No matter which way you cut it, this is a disgusting situation, especially in light of the Turnbull Government’s proposed multi-billion dollar tax cuts for large corporations and high income earners.
Sadly, Labor is sitting on the fence with respect to raising Newstart. Bill Shorten’s Budget Reply Speech didn’t even mention Newstart, whereas separately Shorten has merely committed to “having a root-and-branch review of our government’s payment system on Newstart and like-minded allowances and payments”.
This is not good enough from Labor, which has made reducing inequality a key plank of its election pitch. How can Labor realistically hope to ‘fix’ inequality without addressing Australia’s disgracefully low Newstart (and Youth Allowance) payment?
