Labor on the fence over new JobSeeker rate

Labor has refused to nominate a new JobSeeker rate for unemployed Australians, as welfare and charity groups condemned the increase of $50 a fortnight.

Opposition social services spokeswoman Linda Burney says Labor won’t stand in the way of extra money going to welfare recipients. Picture: AAP

Labor has refused to nominate a new JobSeeker rate for unemployed Australians, as welfare and charity groups condemned the Morrison government’s permanent ­increase of $50 a fortnight.

The Australian Council of Social Service said the single biggest increase in unemployment benefits since 1985 was a “heartless ­betrayal of millions of people” that showed a “complete lack of humanity and empathy”.

The base rate of JobSeeker will increase from $40 a day to about $44 under the proposed changes.

Welfare recipients currently get $51 a day because they are paid the temporary coronavirus supplement on top of JobSeeker until March 31.

Opposition social services spokeswoman Linda Burney said it was not Labor’s intention to stand in the way of ­welfare recipients receiving extra money but the party wanted to scrutinise the government’s tougher mutual obligation requirements before finalising a position.

Asked on Tuesday what rate Labor would like JobSeeker to be set at, Ms Burney said: “Labor has not determined an amount, and I will not be pushed into naming an amount today.”

The Greens said an extra $25 a week was a “cruel joke” and $44 a day was not enough to live on, meaning people would go without meals, medication or money to pay for heating and cooling.

“The government chose to lift people out of poverty when the pandemic hit and now they are choosing to condemn people in our community to live on just $44 a day in the midst of a recession and a pandemic,” Greens family and community services spokeswoman Rachel Siewert said.

ACOSS had wanted Australians to receive $65 a day through a permanent JobSeeker increase. “There is only one job available for every nine people looking, and at $44 a day the government’s announcement is well under half the minimum wage,” ACOSS chief executive Cassandra Goldie said.

“Today, the government has turned its back on those with the least, plunging people further into poverty. It’s a cruel decision that shows a complete lack of humanity and empathy. It comes as devastating news for so many and will have serious consequences for people’s lives, including homelessness and crushing debt.”

Business groups largely endorsed the permanent increase, ­although the Business Council of Australia said it needed to be introduced alongside urgent reform to better support unemployed people find meaningful jobs.

BCA chief executive Jennifer Westacott said it was crucial for there to be “proper” indexation of the JobSeeker payment, which should be closer to the daily aged pension rate of $61.50.

“This increase in JobSeeker support will help reduce some of the barriers that prevent unemployed people getting a job, although the ultimate goal remains how we help unemployed people find jobs and stay in work,” Ms Westacott said.

“We need to get job service providers and businesses working ­together better so that people are matched with employers.”

Australian Industry Group chief executive Innes Willox noted some employers were concerned that increasing the base rate would act as a disincentive for people to look for work but said on balance the “modest” rise was “sensible”.

Mission Australia urged the government to commit to an “adequate” increase to JobSeeker and other allowances, while the Salvation Army said a permanent ­increase of $125 a week was the “absolute minimum needed”.