Jim Chalmers faces ALP revolt on JobSeeker

The Treasurer is facing growing internal division over his decision to reject a core $24bn recommendation to raise JobSeeker by 40 per cent to just under $1000 a fortnight.

Treasurer Jim Chalmers. Picture: NCA NewsWire / Sarah Marshall

Jim Chalmers is facing growing internal division over his decision to reject a core $24bn recommendation from his Economic Inclusion Advisory Committee to raise JobSeeker by 40 per cent to just under $1000 a fortnight.

Labor MP Mike Freelander is joining an increasing number of Labor backbenchers urging the Treasurer to substantially lift JobSeeker and related payments to address structural inequality.

The Macarthur MP also did an about-face on his push for Labor to go ahead with legislated stage-three tax cuts after previously urging the Albanese government to deliver the tax cuts in full amid concern people earning $200,000 were “not rich”.

He has now called for the cuts to be reversed to fund an increase to JobSeeker for the ­nation’s most vulnerable.

“I think JobSeeker should be raised as it’s just a measure of inequality … and I’m changing my opinion about stage three. When I look at the level of inequality and rate of JobSeeker, it’s clear we need to do something,” Dr Freelander said.

“I’d rather see the stage-three tax cuts reversed so we can pay for an increase to JobSeeker. It’s not ideal to go back on what we’ve said but the situation is now very different; even I think we need to rethink those stage-three tax cuts, but Jim has got a very difficult job to do and he’s doing a great job.”

The Albanese government is facing a backbench revolt after several Labor MPs signed an open letter co-ordinated by the Australian Council of Social Service to lift JobSeeker to address “structural injustice” and “increased deprivation”.

Canberra MP Alicia Payne, Boothby MP Louise Miller-Frost, Jagajaga MP Kate Thwaites and Higgins MP Michelle Ananda-Rajah signed the letter addressed to Anthony Albanese, which urges him to “substantially increase” JobSeeker, Youth Allowance and related payments.

“We all want the security of knowing that we’ll be supported during tough times,” the letter reads. “But right now, the rate of JobSeeker is so low that people are being forced to choose between paying their rent or buying enough food and medicine.”

Liberal MP Bridget Archer has thrown her support behind the push, alongside independent ACT senator David Pocock, Tasmanian senator Jacqui Lambie and the Greens.

Senator Pocock said it was time Labor “listened to the experts when it comes to economic inclusion”. “There will always be pressure on the budget, but this isn’t a can the government can kick down the road forever.”

Several teal MPs are also calling for income support to rise, including Kooyong MP Monique Ryan, Goldstein MP Zoe Daniel, Curtin MP Kate Chaney, Warringah MP Zali Steggall and Indi MP Helen Haines.