Lifting Newstart is a policy no-brainer

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The Australian Council of Social Service (ACOSS) has used its submission to the pre-Budget process to urge the federal government to increase funding for the Newstart allowance by $3.8bn. CEO Cassandra Goldie has called for Newstart to be increased by $95 a week. Welfare groups have previously sought a $75 increase, but Goldie contends that the rising cost of living means this would no longer be sufficient:

Citing new analysis of the wage index between 2016 and 2018, the Australian Council of Social Service (Acoss)… is now calling for a $95 boost to the $279.50 weekly payment, up from a previous demand of $75 a week.

The proposal, contained in Acoss’ federal budget submission, aims to address the widening gap between the combined rate of Newstart and rent assistance and what the organisation says a single unemployed person needs to afford essentials such as food and shelter…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.