Labor under crossbench pressure on cost of living

Balance-of-power senators are calling on Anthony Albanese to implement the big spending recommendations made by the government’s Economic Inclusion Advisory Committee.

Greens leader Adam Bandt. Picture: Getty Images

Balance-of-power senators including the Greens and ACT independent David Pocock are calling on Anthony Albanese to implement the big spending recommendations made by the government’s Economic Inclusion Advisory Committee and drop the stage three income tax cuts.

Greens leader Adam Bandt said on Wednesday Labor was not a progressive government and was forcing people to “live in poverty while giving a $9000-a-year tax cut to billionaires and politicians”.

“Labor is spending over half a trillion dollars on stage three tax cuts for the wealthy and on nuclear submarines while making the poor foot the bill,” he said.

“Labor’s not making ‘hard choices’ in this budget. They’re making everyday people make hard choices, like whether to pay the rent or put food on the table.”

Treasury has modelled the core recommendation of the EIAC for a 40 per cent increase to JobSeeker – lifting the payment to just less than $1000 a fortnight – as costing $24bn.

The total cost of the 37 recommendations, including a boost to rent assistance and providing three days of early childhood education, would be $34bn over the forward estimates.

Jim Chalmers has played down the prospect of a major increase to the JobSeeker payment in the May 9 budget, saying the government would “provide support where we can … where it is ­responsible and affordable to do so”.

Senator Pocock told ABC radio that Australia was “one of the wealthiest countries in the world” and the government could implement the recommendations of the committee.

“This is something that we can do. It’s simply about priorities,” he said.

“This is what we need to do to address the awful levels of poverty that we’re starting to see here in Australia … Now it’s up to the government. Are they going to listen to expert advice?”

Australian Council of Social Service chief Cassandra Goldie, a member of the committee, said JobSeeker needed to be lifted.

“The government says that it is serious about delivering a budget that puts cost of living at its heart,” she told ABC radio. “The first thing it will do is to fix the ­adequacy of this critical payment.

“We’ve got about a million people who are struggling to survive going without food, going without medicines.”

The pre-budget report was agreed to following a deal brokered by the government with Senator Pocock in return for him supporting the government’s workplace reforms.

Peter Dutton said he would imagine Senator Pocock felt “pretty disillusioned with the government”, which hadn’t kept its word with him. “I don’t think the government ever had a true intent of passing any of that on by way of an increase in the base rate,” the Opposition Leader said.

“I would be very surprised if this is not another big tax and spend budget. Labor will have huge revenues coming in.

“In the budget you’ll see a dramatic increase in royalties (and) company tax receipts and they will spend a lot of money for pet causes to keep the unions happy.”