Thanks to the rebound in Australian inflation courtesy of the ‘base effect’:
Australia’s welfare recipients will soon receive solid increases in payments:
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From next week, the maximum single age pension rate will rise by $14.80 to $967.50 a fortnight, while age pensioner couples will receive an extra $22.40 combined, taking their fortnightly payment to $1458.60.
JobSeeker and other allowances will increase by up to $11.90 a fortnight, and parenting payments and rent assistance are also set to rise…
Pensions and other payments are adjusted twice a year and the coming rise, which takes effect from September 20, is the largest increase since 2014, the government says.
The $1.46 billion annual rise reflects stronger inflation data, which has rebounded after dropping sharply during the early months of the pandemic.
Almost 5.3 million people will receive the increased social security payments, including 2.58 million on the age pension, 756,000 on a disability support pension, and 977,500 receiving JobSeeker payments…
Pensions are rising by 1.6 per cent, while JobSeeker and related payments are linked to the Consumer Price Index and will climb by 1.4 per cent.
Seniors organisation COTA Australia’s chief executive, Ian Yates, praised the way pension rises were indexed to whatever figure was higher among inflation, pensioner living costs and average weekly earnings.
The bigger question that should be asked is why payments to JobSeeker recipients are indexed to CPI while the Aged pension is indexed to the greater of CPI, average weekly earnings and the pensioner cost of living index?
JobSeeker recipients currently receive only $44 a day versus $61.50 a day for Aged Pension recipients – a gap that will only widen under these arrangements:
JobSeeker payments are also way below the poverty line:
For years Australian policy makers pretended to care about ‘solving’ poverty. For a brief moment they succeeded accidentally when the government temporarily doubled JobSeeker via the Coronavirus Supplement.
Clearly, JobSeeker is woefully inadequate and should be pegged to the Aged Pension level.