Scott Morrison hits out after Barnaby Joyce calls for Newstart payment increase

Scott Morrison has weighed into debate around Australia’s Newstart allowance after Nationals MP Barnaby Joyce called for it to be increased. TAKE OUR POLL

The prime minister has swatted away a call from one of his noisiest backbenchers to increase the unemployment payment.

Former Nationals leader Barnaby Joyce wants the dole lifted and a new rate added for people living in regional areas.

But Scott Morrison says his government has no plans to do any of that.

“We will continue to increase Newstart every six months as has always been the practice,” he told reporters in Dubbo, referring to the biannual indexation of the welfare payment.

Scott Morrison says his government has no plans to give the Newstart payment a significant boost. Picture: AAP

Mr Joyce backed the coalition’s usual line that the best form of welfare is a job, but pointed out that to get into work people needed a certain level of infrastructure in their lives.

“Newstart is a hard life,” the government backbencher told The Australian. He also wants the Newstart rate to take into account people’s geographic locations, with a higher cost of living in the regions but higher rents in the cities.

“If someone’s on Newstart in a town like Woolbrook, it’s going to cost you $50 to go to Tamworth to do the groceries or go to a job interview,” he said.

“They live in those places because the rent’s cheap but the rent’s cheap because it’s a longway from the services.”

The peak body for social services organisations, ACOSS, has welcomed Mr Joyce’s support for the long-running push to increase the $277-a-week payment.

Acting chief executive Jacqui Phillips said no matter where someone lives, it was really tough to get by on Newstart.

“Instead of supporting people through tough times to find suitable paid work, Newstart leaves people to choose between a roof over their head and food on the table,” she said.

Yesterday, Labor MP Nick Champion said $75 a week boost to Newstart is necessary, mirroring the rate advocated by ACOSS.

Nationals MP Barnaby Joyce earlier called for the Newstart payment to be increased. Picture: AAP

Labor went to the federal election promising to review the rate of Newstart, although some among its ranks are now saying the party should have pledged outright to boost it.

Economists, business groups and crossbench politicians also back the call for an increase.

Mr Morrison and Treasurer Josh Frydenberg say the government’s focus for unemployed people is on getting them into jobs.

“The latest jobs figures showed over 20,000 additional full-time jobs,” Mr Morrison said.

“That is good news. That’s great news! More jobs! How good are more jobs?”

Thursday’s data from the Australian Bureau of Statistics in fact showed a net increase of just 500 jobs for the month of June, with the 21,100 increase in people with full-time work offset by a 20,600 drop in people with part-time work.