Federal Election 2019: Where the parties stand on raising the Newstart allowance

The Advertiser’s 2019 Federal Election Policy Tracker is putting the policies, not the politicians, first. Find out what the major stakeholders are saying, and where the major parties stand, on welfare.

2019 Federal Election SA Policy Tracker dashboard. Artwork Martin Banks.

• RELATED: Want to ease poverty? Increase the Newstart allowance - SACOSS

Newstart is the government allowance paid to the majority of jobseekers in Australia.

Newstart has not increased, in real terms, for more than 20 years. Its approximately 700,000 recipients currently get $273 a week - about $39 a day.

In South Australia, there are about 68,000 recipients on Newstart. Of those, about 67 per cent have received the payment for 12 months or longer.

A report by Deloitte Access Economics, released in 2018, found raising Newstart would have a range of “prosperity effects” and lead to 12,000 more people being employed by the 2020-21 financial year, along with a rise in wages.

However there have also been concerns raised about the impact raising the rate would have on the nation’s bottom line.

The Australian Council of Social Services, and sectors of the Labor Party, have long argued for an increase in the allowance of $75 per week arguing people on Newstart are living below the poverty line.

WHAT THE STAKEHOLDERS SAY

SACOSS chief executive Ross Womersley

Mr Womersley says Australia’s political parties have a huge opportunity to provide the leadership Australia is calling out for by attending to the needs and interests of our most vulnerable citizens.

“It is patently clear that the levels of Newstart and youth allowances are appallingly inadequate.

“If any political party wanted to do one thing about poverty in Australia today it would be to raise the rates of those allowances by an absolute minimum of $75 per week.”

Former Prime Minister John Howard

Mr Howard, who established the work-for-the-dole scheme, believes there is a debate to be had about increasing the level of payment from $40 a day arguing last year that he was in favour of freezing payments previously but the freeze had “probably gone on too long”.

WHAT THE PARTIES SAY

THE COALITION

Our government believes the best form of welfare is a job. With the Budget still in deficit there is no room to boost welfare benefits.

Our plan for a stronger economy means more Australians are finding jobs and an extra 1.2m Australians are in jobs since we came to office.

Our plan for a stronger economy is focused on getting people off welfare and into work which has driven down the proportion of working-age South Australians receiving welfare from 19.8 per cent when Labor was last in power to 18.1 per cent.

Nationally, it’s at a 30-year low.

By delivering a stronger economy we can deliver the essential services like Australia’s welfare system and ensure it keeps up with the cost of living, but unlike Labor’s plans to scrap mutual obligation we believe the right to welfare comes with responsibilities.

That’s why we’ve rolled out cashless welfare cards in places like Ceduna so welfare money cannot be spent on gambling or alcohol, it’s why we’ve saved taxpayers $1.4b by cracking down on welfare cheats, and why we’ve reinvigorated work for the dole. Newstart recipients will also be entitled to receive payment to alleviate power bill stress.

LABOR

Labor accepts that the rate of Newstart is too low. That is why Labor will undertake a review of the adequacy and appropriateness of Newstart and related allowances within the first 18 months of a Shorten Labor Government.

When we were government we delivered the single biggest increase to the pension in history, and in opposition we protected South Australians from the Liberals’ pension cuts.

Labor will invest significant resources in education and training – to ensure that every South Australian has the skills and training they need to get a job.

This includes record investment in schools, uncapping university places and investing in TAFE facilities. Labor will also waive upfront fees for 100,000 TAFE places in priority areas.

Jobs

■Labor will stand up for jobs: good jobs, secure jobs, jobs with fair pay and decent conditions.

■ Labor will drive a boom in construction jobs and apprenticeships with our investments in public transport, regional roads and new energy infrastructure.

■ Wherever there is a Commonwealth dollar being spent on priority infrastructure, one in 10 people employed on the site will be an Australian apprentice.

Working conditions

■ In our first 100 days, we are going to restore Sunday and public holiday penalty rates for 700,000 workers including nearly 130,000 hospitality and retail workers in SA.

■We are going to crack down on the overuse and abuse of labour hire casuals and ensure same job, same pay.

■ For those adapting to industrial change, we’ll create a Just Transition Authority so workers and communities get the help they need to transition into their next employment.

■ We will deliver a fair go for Australian women by empowering the Fair Work Commission to order pay increases for workers in female dominated industries, and require large companies to report on how much they pay women compared to men.

GREENS

We will immediately raise Newstart and Youth Allowance by $75 per week and bring back Parenting Payment Single to help single parents. We will abolish punitive measures like the cashless welfare card – because we should all be able to access income support with dignity, while being treated with respect.

The Greens have a plan to protect workers’ rights, support small business and the industries of the future, create jobs, close the gender pay gap and plan for the future of work. We will create a future for all of us by educating, upskilling and protecting people as our industries change. We will establish a specialised, independent Future of Work Commission which will focus on the impacts of technological innovation and develop long-term strategies for jobs. We will invest in the science, research and innovation that will help people get ready for the jobs of tomorrow, today.

CENTRE ALLIANCE

Centre Alliance supports an increase to the base rate of the Newstart Allowance.

AUSTRALIAN CONSERVATIVES

We won’t increase welfare payments because the best form of welfare is a job - as lower welfare costs in the latest budget demonstrates, thanks to more people being in jobs. The Australian Conservatives will remove the taxes and red tape that prevent job creation, meaning more South Australians will have the security and dignity of a job.

THE ADVERTISER SAYS

The ALP disappointed many in the welfare sector when they did not announce, during December’s National Conference in Adelaide, a promise to raise the rate of Newstart allowance.

Very few in the party would disagree that the rate is too low.

But the question would then become how does a Bill Shorten Labor Government pay for such a rise?

One thing the ALP are cool on is the cashless welfare card that has been rolled out in primarily regional and remote parts of the country, including Ceduna, here in SA.

The Coalition argue the card has been a success - helping to reduce alcohol-related domestic violence - and many senior Liberals would like to see it rolled out into metropolitan areas with high unemployment.

But a crackdown on welfare recipients focused on the ‘mutual obligation’ principle that ensures jobseekers actively seek work is already underway an is expected to continue to be the Coalition’s major focus.

The ALP have, on the other hand, urged a rethink arguing, with support form the business community, that current obligations are a waste of time.

-Matt Smith, National Affairs Editor