Election 2022: No increase to JobSeeker in first Labor post-election budget

Anthony Albanese says high debt levels means Labor will not be looking to increase the JobSeeker payment on forming government.

Labor leader Anthony Albanese in Melbourne on Wednesday. Picture: Toby Zerna

Anthony Albanese has cited “fiscal responsibility” in the face of mounting national debt as the reason a new Labor government won’t commit to increasing the JobSeeker unemployment payment.

But welfare groups said they would continue to press all candidates and parties during the election campaign to recognise the cost-of-living pressures the $46-a-day payment put on its almost one million recipients.

Mr Albanese on Wednesday denied any Labor policy change on JobSeeker, after Shadow Assistant Treasurer Andrew Leigh told a welfare conference on Tuesday the party would not be pursuing a review of the rate of JobSeeker and would not commit to increasing it.

“We haven’t dumped anything. What we have said is we don’t have a plan to increase the JobSeeker allowance in our first budget,” the Labor leader said, after acknowledging those on the payment were “doing it tough”.

“If we are fortunate enough to form government, (it will be) at a time where debt is heading toward a trillion dollars.

“You can’t repair all of the damage or do everything you want to do immediately. You have to be fiscally responsible,” he said.

Australian Council of Social Service chief executive Cassandra Goldie said there were 1.5 million people and about 900,000 children struggling to survive on JobSeeker and other income supports that were “completely inadequate to cover basic costs”.

“How can anyone claim to care about the cost of living without addressing the inadequacy of JobSeeker, which is not enough to cover the cost of food, rent and essential medication?” Dr Goldie said.

Dr Goldie said whichever party formed government, “if they want to tackle poverty and disadvantage and support jobs, their first lever is lifting the incomes of those with the least”.

“We are overall the second wealthiest country in the world. We have the resources to do it and our research shows if governments make the right choices to support our neediest, the people will back them. It’s also good economics,” she said.

Anglicare Australia executive director Kasy Chambers said the Covid-19 supplements paid to those not working showed the government can offer income support to people at levels that will alleviate poverty “and the sky won’t fall in”.

Anglicare Australia executive director Kasy Chambers.

“People still wanted to work, they continued to work,” Ms Chambers said.

She acknowledged that lifting the rate of JobSeeker would be a significant cost to the budget.

“Yes it’s going to cost, but there is a return on investment. Kids will be at school, families will be lifted out of poverty, they will have social mobility,” Ms Chambers said.

Greens leader Adam Bandt accused Labor of lurching to the right on its JobSeeker policy, with the Greens taking a policy to the election to raise the payment along with other benefits to $88 a day, at an estimated cost to the budget of $88bn over four years.

Superannuation Minister Jane Hume said Mr Albanese was “crab walking” away from his party’s promise to increase JobSeeker.

“That was a promise that was made by the Labor Party and they have walked away from that promise,” Senator Hume said.