A government-appointed committee wants substantial increase in JobSeeker payments

A government-appointed body has called for a substantial increase in JobSeeker, but recipients may be in for a disappointment.

The Albanese government is under new pressure to increase the rate of the Jobseeker and other allowances, described as “seriously inadequate” by a government-appointed committee.

Treasurer Jim Chalmers on Tuesday released the first report of the interim Economic Inclusion Advisory Committee chaired by former Labor minister Jenny Macklin, which is helping inform the government’s considerations ahead of the May 9 budget.

The committee has made 37 recommendations, most significantly increasing JobSeeker to 90 per cent of the aged pension of $971.50 a fortnight for a single person.

“All indicators available to the committee show that current rates of social security payments for JobSeeker payment and related non-pension payments for working age Australians are seriously inadequate,” the committee report said.

“People receiving these payments face the highest levels of financial stress in the Australian community.”

Dr Chalmers said the government would consider, but not commit to, the recommendations but is unlikely that the government to agree to the substantial and expensive increase in JobSeeker.

There are calls for a substantial increase in the JobSeeker and other government payments. Picture: NCA NewsWire / David Geraghty

The committee said the current rate of Commonwealth Rent Assistance (CRA) was also too low.

“In addition to substantially increasing base rates of JobSeeker payment and related payments, there should be increases in the rate of CRA to reflect the long-term reduction in its inadequacy,” the report said.

“While there may be concerns about the effect of increased payments on incentives for work, it is our view that current unemployment payments havefallen to such an inadequate level that they create a barrier to paid work.”

The committee has recommended the government commit to “a substantial increase in the base rates” of JobSeeker payment and related working age payments as a first priority.

The current JobSeeker rate is $49.50 a day, 57 per cent below minimum wage and 34 per cent below the age pension.

Welfare groups have been calling for a permanent increase for years.

But the government is unlikely to substantially increase the JobSeeker payment – the main and most expensive recommendation of the committee.

It’s understood such a move would cost $24bn over the forward estimates.

Treasurer Jim Chalmers says the budget is facing serious pressure. Picture: NCA NewsWire / Martin Ollman

Dr Chalmers said the government “will always look to provide support where we can to those most in need, where it is responsible and affordable to do so.”

“While we can’t fund every good idea, there will be measures in the May budget to address disadvantage,” he said in a statement.

“This will include energy bill price relief that prioritises those on payments and pensions.”

The Australian Council of Social Service (ACOSS) said the government should act on the report and increase the JobSeeker to the recommended 90 per cent of the aged pension.

ACOSS CEO Cassandra Goldie said there was no time for delay and the Treasurer must act on these recommendations in the May Budget.

“The clear message from the committee is that JobSeeker and related payments are grossly inadequate,” she said in a statement.

“They entrench people in poverty and create a barrier to paid work for people looking for a job.

“In this budget the Treasurer has the chance to reduce poverty and suffering in this country. He must act now.”

Dr Cassandra Goldie, CEO of the Australian Council of Social Service.

ACOSS calls for income support payments to be increased to at least $76 a day as a first priority and rent assistance to be doubled.

“This would help ensure people can keep a roof over their head and cover the cost of other essentials,” Dr Goldie said.

Dr Chalmers said the May budget would build on the work the government has done in its first 11 months such as making it easier for pensioners to work more hours without losing their pension; improving employment services to better support people with disability to find employment; and by investing in Paid Parental Leave to give more families access to the payment and provide parents greater flexibility in how they take leave.

The Economic Inclusion Advisory Committee was established in December last year to provide advice in the lead-up to budgets on policies to address disadvantage and boost economic participation.

The Treasurer said some of the committee’s 37 recommendations will be considered as part of other government processes that are currently underway, such as the development of the Employment White Paper, the Measuring What Matters Statement and the Early Years Strategy.

Originally published as A government-appointed committee wants substantial increase in JobSeeker payments