Newstart increase of $10 a day would boost employment for 12,000 people, says senator

INCREASING Newstart payments by $10 a day would boost employment for 12,000 Australians, says independent Senator Tim Storer.

INCREASING Newstart payments by $10 a day would boost employment for 12,000 Australians, says independent Senator Tim Storer.

On the back of new economic data, Senator Storer will call on senators to support a motion to raise the single rate of benefits including Newstart and youth allowance.

A Deloitte modelling report has found a weekly increase of $75 would benefit around 770,000 people — many of whom are unemployed or on the lowest income.

“It’s $75 a week — $10.71 a day; per year across the economy as a whole, direct cost is a bit over $3 billion,” said Deloitte Access economist Chris Richardson.

Independent Senator Tim Storer

The report, commissioned by the Australian Council of Social Service, also revealed SA’s disposable income would receive a $288 million injection, with residents in Salisbury and Onkaparinga among the beneficiaries.

Senator Storer said payments of around $290 a week were “not only an issue of fairness” but simply not enough to live on.

“The profoundly inadequate level of Newstart was one of the key reasons that I opposed the government’s company tax cuts,” he said.

“If Australia is to live up to its reputation for equity and fairness, Newstart needs to be raised to a level which actually ensures the employability of recipients.”

Almost 68,000 South Australians receive Newstart payments.

SA Council of Social Service chief executive Ross Womersley said increasing payments would lead to greater spending on locally produced goods and services.

He said Deloitte modelling projected increased spending of $37 million a year in the Salisbury Council area and $31 million in Onkaparinga if payments were increased.

Melinda Cilento, Committee for Economic Development of Australia chief executive, said action was overdue and an immediate reform to Newstart could begin to reduce poverty and disadvantage.

“Newstart has not increased in real terms for over 24 years with recipients struggling to cover basics like rent, utilities, health and transport,” she said.

Originally published as Newstart increase of $10 a day would boost employment for 12,000 people, says senator