Lyons Labor MP Brian Mitchell calls for Newstart increase

Another Federal politician has joined the chorus of voices calling for an increase to the Newstart welfare payment.

Federal Labor MP for Lyons Brian Mitchell Labor says the Newstart allowance needs to be increased. Picture: NIKKI DAVIS-JONES

WELFARE payment on Newstart is “absolutely inadequate” and must be increased, according to Lyons Labor MHR Brian Mitchell.

Tasmanian Liberal senator Eric Abetz also has acknowledged the $277-a-week unemployment benefit as being “exceptionally difficult to live on” — but on Thursday he argued the Government could not yet afford to raise it.

Pressure is mounting on the Federal Government to increase Newstart by $75 a week. Analysis by Deloitte Access Economics found such a raise would provide a $96 million boost to the Tasmanian economy.

Mr Mitchell said his preference was for a review of the nation’s entire income support system, including rent assistance and aged pensions — “everything, to see if it’s fit-for-purpose”, he said.

But he added: “In the absence of that, Newstart needs to go up.

“Obviously I support Labor’s position on Newstart, but I make no bones about it: Newstart’s too low.”

Tasmanian Labor passed a motion at its state conference last year calling on a future Labor Government to raise Newstart by “at least $50 a week”.

Tasmanian Senator Eric Abetz. Picture: NIKKI DAVIS-JONES

The Opposition went to the federal election committing instead to review Newstart if it won government.

Senator Abetz pointed out that neither major party went to the May 18 poll committing to raise Newstart.

“There is no denying that it is exceptionally difficult to make ends meet on Newstart,” he said. “But there are … other factors involved as well that need to be taken into account, and that is the capacity of taxpayers to fund an increase.

“If the budget were able to bear an increase, I would, like anybody, be prepared to look at [increasing Newstart], but until then we have to recognise that things are tough.”

More than 21,300 Tasmanians rely on Newstart, the highest proportion of any state. More than 4800 of those live in Mr Mitchell’s electorate.

Newstart increases in line with CPI twice yearly, but has not increased in real terms in 25 years.

The average time spent on Newstart is 156 weeks.

Originally published as Lyons Labor MP Brian Mitchell calls for Newstart increase