Australian Greens dissenting report

1.1Millions of people in this country live on starvation payments, without access to affordable housing, and no way to meet the rising costs of basics like food, healthcare and transport.

1.2After 18 months, 17 hearings and 190 submissions, the single consistent recommendation has been for the Labor Government to immediately lift income support payments.

1.3On 26 April 2024, the Government’s Economic Inclusion Advisory Committee (EIAC), led by former Labor Minister the Hon Jenny Macklin AC, called for the Government to urgently:

Substantially increase JobSeeker and related working age payments and improve the indexation arrangements for those payments.[1]

1.4On 5 May 2024, over 300 prominent women and non-binary people from across the community, union, business and academic sectors and civil society wrote to the Prime Minister urging a substantial increase to JobSeeker and Youth Allowance in the Federal Budget, as a matter of critical economic security for women:

As the Chair of the Economic Inclusion Advisory Committee, the Hon Jenny Macklin AC said: 'Women escaping violence also need to know that there will be a decent social security net for them'.

The current social security safety net cannot be described as “decent” nor safe.

The JobSeeker Payment is just $55 a day. Youth Allowance is even less at $45 a day. Around 500,000 women receive these payments. While the government’s expansion of Parenting Payment Single to 82,000 single parents whose youngest child is aged between 8 and 14 was most welcome, there remain large numbers of women of all ages in receipt of JobSeeker and other working-age payments that are simply not enough to cover basic costs.

Fixing the adequacy of JobSeeker and Youth Allowance to deliver basic economic security for women cannot wait.[2]

1.5Dr Anna Cody, Sex Discrimination Commissioner, spoke on Radio National advocating for an immediate lift in JobSeeker and Youth Allowance:

…so we would certainly be calling - I would certainly - be calling for a rate that enables young people who are in violent relationships and older women who are in violent relationships to be able to leave so at the same rate as the pension. I know that the Economic Inclusion Advisory Council has said 90% of the pension, but really to ensure that people can have a living, dignified life, it needs to be at that 100% rate.

…Violence doesn't finish on the day that someone leaves the relationship. We know that women are most at risk when they're anticipating separation and having separated. So we need that ongoing support to ensure that they can actually stay free from violence and have that economic security. It's a preventative measure, it will stop homicides..[3]

1.6Last month, seven of the largest food and emergency relief providers, including Anglicare, FoodBank, Nourishing Our Country, the Salvation Army, Second Bite, St Vincent de Paul Society and UnitingCare wrote to the Treasurer calling for an immediate increase in working-age payments. Brianna Casey, the Chief Executive Officer of Foodbank Australia said:

We know that 3.7 million households struggled to put food on the table in the last 12 months. We are seeing an increasing number of households with two adults in full time employment needing food relief, the fact that we’re seeing people in full time employment needing food relief gives an insight into just how difficult it is for those on the lowest incomes.

Urgent action is needed from the federal government to increase the rate of these payments in the upcoming budget.[4]

1.7Through the course of this inquiry, the committee has heard from many organisations supporting this position, outlined below.

1.8St Vincent De Paul:

Now it's clear that emergency relief has become a necessary supplement to JobSeeker. In a real sense, while it allows an increased number to afford the essentials of life, it hides from the parliament the real inadequacy of the income support program.[5]

1.9The Australian Council of Social Service:

The grossly inadequate rate of income support payments has directly been a barrier to employment. It has destroyed people's sense of health. Health equity issues are very serious, leaving people often without any sense of home and eroding people's sense of confidence. I want to repeat: at its heart, this particular part of the scope of this inquiry has not been so much about cost of living as about income crisis, and we'll come back to that, I'm sure, in discussion.

We hope that this committee will join the voices of many others in making a strong recommendation to substantially lift income support payments like JobSeeker.[6]

1.10Australian Unemployed Workers Union:

You basically already know what groups like us will say at this point because it's the same stuff that we've said over years—in my case, five years—which is, primarily, that we need to raise the rate. Yet, despite saying this, we keep having to continue appearing at these inquiries in the face of successive governments that continue starving and sacrificing our members for the greater good of the budget, supposedly.[7]

1.11Salvation Army Port Augusta:

We have identified some opportunities for government to ease the impact of cost of living for people we walk alongside—substantially increasing the Jobseeker payment and youth allowance and increasing the pool of housing available to people on low incomes.[8]

1.12Uniting Country SA:

The other would be to increase things like JobSeeker. They don't keep up, and it puts people in a pretty bad spot.[9]

1.13Ngaanyatjarra Pitjantjatjara Yankunyatjatjara Women’s Council:

Firstly, we want government created or government funded jobs, not government funded welfare. That's our first task. The second one is an increase in the JobSeeker payment because it's just not liveable.[10]

1.14Anglicare WA:

I think the biggest policy areas for us are around income support. So, talking about JobSeeker, Commonwealth Rent Assistance, increasing Jobseeker, broadening the eligibility for rent assistance, and the boost of public housing. So, those two, housing and income support, are the two drivers I think that can resolve poverty and avoid poverty and keep people where they are. So, I think anything that's related to that economic and housing policy.[11]

Anglicare WA recommends numerous strategies, including the following to address the cost-of-living pressures: equitable distribution, access to adequate income by increasing the rate of JobSeeker to $76 a day, tied to the Wage Price Index.[12]

1.15Salvation Army Western Australia:

We need to further increase the JobSeeker and Youth Allowance if we really want to give people a chance to succeed.[13]

1.16Consumers Health Forum of Australia:

Finally, along with many other organisations we would advocate an increase to JobSeeker, youth allowance and other related income support such as the pension because, without the funding, people simply cannot access health care, and many people choose to not get care and not get their medications.[14]

1.17FoodBank:

…That the Australian Government delivers a permanent increase to income support payments in the 2023–24 Federal Budget.[15]

1.18Suicide Prevention Australia:

…The Commonwealth Government permanently increase the base rates of income support payments to adequate levels as outlined in the Raise the Rate campaign.[16]

1.19Uniting (Victoria and Tasmania):

…It is clear that we need a permanent increase in the base rate of JobSeeker and other social security payments.[17]

1.20Rental and Housing Union:

…broaden welfare eligibility and raise the rate of payments above Henderson Poverty Line.[18]

1.21Uniting Care Australia:

…Government-administered income support rates need to be increased, to ensure recipients have the means to cover their daily expenses and overcome poverty.[19]

1.22Women With Disabilities Australia:

In order to support people to achieve a basic standard of living, ACOSS recommends that base rates of working age income support payments be raised to at least $65 a day; and that supplementary payments be provided to individuals who are more financially vulnerable, including people with disability or chronic illness and single parents.[20]

1.23Headspace:

In order to provide adequate support to those in need, income support payments, including JobSeeker and Youth Allowance, need to increase to above the poverty line.[21]

1.24Youth Affairs Council of South Australia:

Income support payment rates remain lower than any poverty line or measure and these consistently low rates have contributed substantially to cost of living pressure experienced by young people. Successive Federal Governments have declined to raise the rate of income support even though it would support more than one million Australians currently living in poverty.[22]

1.25University of Tasmania in partnership with Anglicare Tasmania and Well Economics Analysis:

…Measures which the Inquiry could carefully consider include the following:

i. Increases in income support for beneficiaries and low-income households.[23]

1.26Mission Australia:

Raise the rate of Jobseeker and other income support payments to at least $73 a day so everyone can keep a roof over their head and food on the table.[24]

1.27Western Australia Council of Social Services:

…As such, targeted intervention to support those on the lowest incomes access housing, including through increasing income support and constructing public housing, is needed.[25]

1.28Centre for Excellence in Child and Family Welfare:

We recommend an urgent increase to all social security payments to a minimum of $73 per day, to coincide with the actual cost of living.[26]

1.29Tomorrow Movement:

All income support payments should be increased to be above the Henderson poverty line, giving our most vulnerable a life saving minimum income of at least $88 a day (at time of writing).[27]

1.30Volunteering Australia:

…Deliver a permanent increase to income support payments in the 2023-24 Federal Budget.[28]

1.31Sacred Heart Mission:

The solutions to alleviating this crisis are clear and available – raising income support payments to a liveable level above the poverty line would be the single greatest factor in poverty reduction in Australia and would help people to cope with rising living costs.[29]

1.32St Vincent de Paul Society National Council of Australia:

In summary, the Society recommends to the Select Committee that the Australian Government…(iii) increase the base rate of working age payments (in line with pensions).[30]

1.33Orygen & Australian Youth Affairs Coalition:

Income support needs to be increased to provide young people with at a minimum level of $73 a day. An independent Commission, similar to the Fair Work Commission, be established to annually review and determine income support. The determination process should accept public submissions.[31]

1.34Wesley Mission:

Increase the base rate of income support payments to adequate levels as outlined in the Raise the Rate campaign. Increasing the JobSeeker rate to at least $73 per day, as suggested by the Australian Council of Social Service (ACOSS), would not only help lift people out of poverty but also potentially mitigate a rise in the suicide rate.[32]

1.35Financial Counselling Australia:

…without an appropriate rise in JobSeeker/pension payments, to at least $73 a day, more households in Australia will encounter financial stress and fall below the poverty line. Our sector is a strong supporter of the “Raise the Rate for Good” campaign, led by the Australian Council for Social Services (ACOSS), which advocates for the Government to increase JobSeeker and pension payments to adequate levels.[33]

1.36Youth Action:

Youth Action supports the ACOSS Raise the Rate campaign to have JobSeeker raised to $76 per day. This would allow young people to better afford their rent and other essentials, boosting their ability to maintain their studies and access employment.[34]

1.37Community Industry Group:

A permanent increase to income support payments is necessary to ensure that individuals and families can meet their basic needs, such as housing, food, and healthcare.[35]

1.38Think Forward:

Increase the rate of JobSeeker, which is not keeping up with the cost of living. An additional $2.85 per day is not enough to lift people out of poverty.[36]

1.39National Union of Students and Foundation for Young Australians:

…we note that all social security payments need to be above the poverty line including JobSeeker. The rate of payment should be increased to at least $88 per day to ensure that no student has to live below the poverty line.[37]

1.40Australian Medical Students’ Association:

Raising the rate of youth allowance and job seeker represents a crucial first step toward improving the experience of all medical students in Australia.[38]

1.41Tenants' Union of Tasmania:

We strongly support the Australian Council of Social Services recommendation that at a minimum the rate of Jobseeker, Youth Allowance and other income support payments should be the same level as the pension and pension supplement.[39]

1.42Queensland Council of Social Service:

Through comprehensive and co-ordinated government investment and policy, including increasing income support to above the poverty line, meaningful change can be achieved to help those most in need.[40]

1.43Prevention United:

Young Australians need access to a living wage or levels of income support above the poverty line. Achieving this requires an increase in income support payments for young Australians, particularly young people on the Youth Allowance or JobSeeker.[41]

1.44South Australian Council of Social Service:

…we support ACOSS’ call to raise the rate of JobSeeker and other Centrelink payments to at least $78 a day (in line with the age pension). SACOSS believes that such an increase would be the single most important cost of living support for households whose major source of income is those Centrelink payments.[42]

1.45Youth Affairs Council of Western Australia:

Raise the rate of JobSeeker and Youth Allowance payments to at least $76 per day, adequately indexing both payments aligned with increases to wages and CPI.[43]

1.46UQ Union and UQ Union Student Rights Collective:

[Recommends] raising income support payments to above the poverty line including Youth Allowance, Austudy, Abstudy and the Disability Support Pension (at least $88 a day).[44]

1.47Settlement Council of Australia:

… Increase the amount of social security payments for all vulnerable Australians and index the rate regularly to reflect the rate of inflation.[45]

1.48Financial Counselling Victoria:

We support the #RaisetheRateforGood campaign, and recommend that JobSeeker and other income support payments are increased to meet the Henderson Poverty Line, with supplementary payments to vulnerable groups to meet their specific needs.[46]

1.49Anglicare Southern Queensland:

For years now, Anglicare SQ and many other individuals and organisations across the community and other sectors have been advocating for an increase in income support to above the poverty line…[47]

1.50Equity Project:

The biggest thing the Federal Government could do right now, is to introduce a substantial increase to the rate of income support to at least $78 a day.[48]

1.51Family and Relationship Services Australia:

We remain concerned, however, that as yet no further support for people on income support payments has been announced. Accordingly, we recommend that income support payments are increased to at least $80 per day.[49]

1.52Federation of Ethnic Communities’ Councils of Australia:

…Increase income support to reflect actual living costs and expand eligibility to payments and crisis support to ensure everyone in Australia has a safety net.[50]

1.53Australian Alcohol and other Drugs Council:

Recommendations outlined in the Australian Council of Social Service’s Five ways to help people with the least with cost of living report, such as investing in the community services sector and raising the rate of income support, be implemented alongside other measures to increase the affordability and accessibility of primary care.[51]

1.54Homelessness Australia, the Community Housing Industry Association and National Shelter:

Any meaningful impact to alleviating housing stress for lower income households must also include a permanent increase in the level of income support beyond the current inadequate routine indexing of pensions and payments.[52]

1.55Australian Council of Social Service:

ACOSS calls on the Federal Government to lift JobSeeker Payment, Youth Allowance, Austudy, Abstudy, and Special Benefit to at least $80 a day in the May 2024 Budget.[53]

1.56Mallee Family Care:

Income support payments should be increased beyond current levels to cope with rising living costs. This includes redesigning the federal income support system to permanently boost payments, index-linking the Disability Support Pension, and raising the Jobseeker payment.[54]

1.57First Peoples Disability Network:

One way to overcome the barriers that have been mentioned is to end or reform restrictions for the DSP and increase the rates at which income supports such as Jobseeker are being offered to ensure an adequate standard of living.[55]

1.58Australian Federation of Disability Organisations:

As a matter of critical urgency, increase income support payments – in particular, the Disability Support Pension and JobSeeker Allowance (for those with Mutual Obligations Removed) – to bring the standard of living of households with members with disability in line with the standard of living of similar households without disability.[56]

1.59Central Land Council:

The Australian Government should permanently and adequately increase Jobseeker and all other income support payments to keep people out of poverty, and provide for ongoing indexation of all payments.[57]

1.60The evidence heard by this inquiry has been overwhelming: by choosing to keep income support payments far below the poverty line, the Labor Government is keeping millions in poverty and insecurity and putting lives at risk. The single most effective way to tackle the cost of living crisis is to raise the rate of income support payments.

1.61Recommendation: The Australian Government lift the base rate of all income support payments to $88 a day in the 2024 budget.

Senator Penny Allman-Payne

Deputy Chair

Greens Senator for Queensland

Footnotes

[1]Department of Social Services, Economic Inclusion Advisory Committee, 2024 Report to Government, 26 April 2024, p. 7.

[2]Australian Council of Social Service, A Letter from Women Leaders to Prime Minister Anthony Albanese, 5 May 2024 (accessed 9 May 2024).

[3]ABC News, Sex Discrimination Commissioner calls for jobseeker increase, 6 May 2024 (accessed 9 May 2024).

[4]Second Bite, Charities urge government to urgently increase income support, 7 May 2024 (accessed 9 May 2024).

[5]Mr Toby O’Connor, Chief Executive Officer, St Vincent De Paul Society, Committee Hansard, 1 February 2023, p. 28.

[6]Dr Cassandra Goldie, Chief Executive Officer, Australian Council of Social Service, Committee Hansard, 1 February 2023, p. 45.

[7]Mr Jeremy Poxon, Media Officer, Australian Unemployed Workers Union, Committee Hansard, 1 February 2023, p. 46.

[8]Major Gaye Day, Corps Officer, Salvation Army Port Augusta, Committee Hansard, 22 August 2023, p. 1.

[9]Ann Crouch, Executive Manager, Uniting Country SA, Committee Hansard, 22 August 2023, p. 17.

[10]Ms Liza Balmer, Ngaanyatjarra Pitjantjatjara Yankunyatjatjara Women’s Council, Committee Hansard, 23 August, p. 19.

[11]Sara Kane, Advocacy Lead, Anglicare WA, Committee Hansard, 26 September 2023, p. 15.

[12]Mr Mark Fuderer, Director, Anglicare WA, Committee Hansard, 26 September 2023, p. 12.

[13]Major Potter, Divisional Commander, Salvation Army Western Australia, Committee Hansard, 26 September 2023, p. 12.

[14]Dr Elizabeth Deveny, Chief Executive Officer, Consumers Health Forum of Australia, Committee Hansard, 1 February 2024, p. 48.

[15]FoodBank, Submission 1, p. 18.

[16]Suicide Prevention Australia, Submission 3, p. 4.

[17]Uniting (Victoria and Tasmania), Submission 2, p. 1.

[18]Rental and Housing Union, Submission 4, p. 5.

[19]Uniting Care Australia, Submission 24, p. 3.

[20]Women With Disabilities Australia, Submission 32, p. 4.

[21]Headspace, Submission 35, p. 4.

[22]Youth Affairs Council of South Australia, Submission 43, p. 4.

[23]University of Tasmania, Submission 48, p. 7.

[24]Mission Australia, Submission 51, p. 1.

[25]Western Australia Council of Social Services, Submission 55, p. 4.

[26]Centre for Excellence in Child and Family Welfare, Submission 66, p. 6.

[27]Tomorrow Movement, Submission 72, p. 13.

[28]Volunteering Australia, Submission 73, p. 2.

[29]Sacred Heart Mission, Submission 74, p. 23.

[30]St Vincent de Paul Society National Council of Australia, Submission 77, p. 4.

[31]Orygen & Australian Youth Affairs Coalition, Submission 79, p. 7.

[32]Wesley Mission, Submission 81, p. 3.

[33]Financial Counselling Australia, Submission 86, p. 5.

[34]Youth Action, Submission 91, p. 11.

[35]Community Industry Group, Submission 93, p. 8.

[36]Think Forward, Submission 94, p. 10.

[37]National Union of Students and Foundation for Young Australians, Submission 98, p. 37.

[38]Australian Medical Students’ Association, Submission 102, p. 5.

[39]Tenants’ Union of Tasmania, Submission 104, p. 4.

[40]Queensland Council of Social Service, (QCOSS), Submission 135, p. 5.

[41]Prevention United, Submission 139, p. 6.

[42]South Australian Council of Social Service, Submission 148, p. 7.

[43]Youth Affairs Council of Western Australia, Submission 150, p. 17.

[44]UQ Union and UQ Union Student Rights Collective, Submission 153, p. 3.

[45]Settlement Council of Australia, Submission 155, p. 4.

[46]Financial Counselling Victoria, Submission 157, p. 3.

[47]Anglicare Southern Queensland, Submission 158, p. 8.

[48]Equity Project, Submission 160, p. 1.

[49]Family and Relationship Services Australia, Submission 161, p. 2

[50]Federation of Ethnic Communities’ Councils of Australia, Submission 168, p. 6.

[51]Australian Alcohol and other Drugs Council, Submission 169, p. 2.

[52]Homelessness Australia, Community Housing Industry Association and National Shelter, Submission 172, p. 7.

[53]Australian Council of Social Service, Submission 172, p. 4.

[54]Mallee Family Care, Submission 175, p. 2.

[55]First Peoples Disability Network, Submission 180, p. 8.

[56]Australian Federation of Disability Organisations, Submission 181, p. 7.

[57]Central Land Council, Submission 184, p. 9.