ALP calls grow for welfare increase

Eight Labor MPs say JobSeeker must rise, Jim Chalmers leaves open possibility of increasing rate.

Anthony Albanese in Sydney on Wednesday. Picture: NCA NewsWire / David Swift

Three more Labor MPs have joined a growing number of ­caucus members demanding the Albanese government lift the rate of JobSeeker in next month’s budget, as Jim ­Chalmers pledges to deliver cost-of-living relief for the most vulnerable Australians.

Labor MP Josh Burns, the member for Macnamara, said the current rate of $49.50 a day for single people with no children was too low and “of course we should raise it”, while colleagues Daniel Mulino, who represents the Victorian seat of Fraser, and member for Bennelong Jerome Laxale agreed lifting the payment was one way to provide relief.

They join Mike Freelander (Macarthur), Alicia Payne (Canberra), Louise Miller-Frost (Boothby), Kate Thwaites (Jagajaga) and Michelle Ananda-Rajah (Higgins) in asking for an increase.

“I am hopeful the executive can come to caucus with a package that demonstrates strong Labor values and the ability to provide relief to those who need it most,” Mr Laxale said.

“There needs to be relief in the budget and my understanding is relief is forthcoming but it has to be measured.”

Mr Mulino, who chairs parliament’s standing committee on economics, said he could “totally understand” calls from Labor MPs who signed an open letter co-ordinated by the Australian Council of Social Service asking Anthony Albanese to “substantially increase” JobSeeker, Youth Allowance and related payments.

“One option would be to look at that payment but there are other ways to deal with the full range of people who are dealing with cost-of-living,” Mr Mulino told Sky News.

Several more Labor backbenchers who wanted to remain anonymous said they were supportive of a rise to Jobseeker, with one expressing disappointment the party didn’t take a “firmer position” on an increase to the 2022 federal election.

Asked to rule out an increase to JobSeeker, the Treasurer, who is in the process of finalising the budget, said on Wednesday: “There will be cost-of-living ­relief in the budget and it will prioritise the most vulnerable.

“For example, the energy bill relief will be focused on and prioritise people on pensions and payments. There are 37 recommendations in the Economic ­Inclusion Advisory Committee report, and we will progress a number of them.

“But we’ve made it clear that we won’t be able to progress all of them immediately.”

Dr Chalmers has rejected a core $24bn recommendation from the Economic Inclusion Advisory Committee to raise JobSeeker by 40 per cent to just under $1000 a fortnight.

The Prime Minister said he understood people were under pressure and knew what it was like to grow up in a household ­reliant on the pension. “It is unsurprising that people in the Labor Party want to do more,” he said. “What we will be doing in the budget is balancing up the need to provide cost-of-living relief … with making sure that we show restraint as well so we don’t add to inflationary pressure.”