The ALP’s delicate flower petal, Anthony Albopansy, has taken the bold step of backing a lift to Newstart, via Domain:
The Labor caucus has endorsed a new policy on Newstart that calls for an increase in unemployment benefits and an immediate inquiry to consider the new rate, amid growing pressure within the government for a funding boost.
…But the resolution stops short of backing a Newstart increase that could cost as much as $12 billion over the next four years.
While the caucus did not decide the size of the funding increase, it endorsed a five-step policy that means Labor will go to the next election with a promise to lift the payment, currently set at $555.70 a fortnight for a single person without children.
About time. What is the ALP for if not this?
A cruel ScoMo, however, hates the idea, also at Domain:
A bipartisan call to increase the Newstart allowance was removed from a parliamentary report at the direction of the Morrison government on the eve of the federal election.
As Prime Minister Scott Morrison stares down growing demands by Coalition MPs to lift the unemployment benefit for the first time since 1994, The Sydney Morning Herald and The Age can reveal former social services minister Paul Fletcher intervened in an inquiry to erase a major recommendation that would have turbo-charged the sensitive issue.
The probe into the causes of long-term welfare was established by the government in mid-2018 to investigate why some Australians become trapped in the system.
The draft final report – agreed to by MPs from the Coalition, Labor and crossbench – contained a specific call to lift the Newstart payment for singles and families.
The cruelty to young Australians and unemployed workers is obvious:
An OECD comparison by @WhitefordPeter pic.twitter.com/vyrIDo4qOT
— Luke Henriques-Gomes (@lukehgomes) July 22, 2019
As well, the economy needs fiscal support and a Newstart lift is a great way to do it given it will very obviously all be spent by growing numbers of unemployed:
As we keep noting, the Newstart Allowance has not increased in real terms (i.e. above the Consumer Price Index) since 1994, whereas the Pension has received significant increases:
Virtually all cross-sections of society have demanded the federal government lift Newstart, including:
- Reserve Bank of Australia;
- 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;
- Liberal senator Arthur Sinodinos;
- Liberal senator Dean Smith;
- Business lobbyist, Heather Ridout;
- independent senator Derryn Hinch;
- One Nation;
- Australian Labor Party;
- The Australian Council of Social Service (ACOSS);
- The Salvation Army;
- South Australian Council of Social Service (SACOSS); and
- The Australian Greens.
Get on the blower to the Property Council and get permission, ScoMo.
