‘Life’s hard’: Joyce backs Newstart increase

Barnaby Joyce says the Newstart payment should be lifted and should also take into account where a recipient lives.

Former Nationals leader Barnaby Joyce has called for an increase to the Newstart payment, saying life on the unemployment benefit is “hard” and advocating a new rate that takes into account the recipient’s geographical location.

The backbencher’s comments come as the Morrison government resists widespread calls for an increase to the payment, which has fallen by 40 per cent in real terms over the past 25 years, arguing Newstart is intended only to be temporary, increases with CPI and recipients generally receive additional government benefits.

Department of Social Services data provided to The Australian shows while 20 per cent of New­start recipients receive the payment for less than three months, the average time spent on New­start is 156 weeks, or three years.

A single, childless Newstart recipient receives $555.70 a fortnight.

That is often supplemented by an $8.80 a fortnight energy supplement and a maximum rent assistance payment of $137.20 a fortnight, or $91.47 a fortnight if living in shared accommodation.

Median rent for a unit in Sydney is $1060 a fortnight, while the cost is $820 in Melbourne, $760 in Brisbane, and $600 in Perth — the Australian capital with the cheapest rent.

Seniors groups and several Labor MPs earlier this week joined a chorus of economists, business peak bodies and social services advocates in calling for an increase to the Newstart payment.

Mr Joyce said he was commenting on Newstart, given his northern NSW seat of New Eng­land is home to some of Australia’s poorest people and as part of his push to increase representation for regional Australians.

“Newstart is a hard life. The best thing obviously people need is a job,” Mr Joyce said.

“ But to have a job, you need some infrastructure. You need some water. You need cheap power. Every time we come up with a plan to make power dearer, we make it harder for people to get blue collar jobs.”

He said the Newstart rate should take into account the ­recipients’ geographical locations, allowing for higher costs of living in the regions and higher rents in capital cities.

“If someone’s on Newstart in a town like Woolbrook, it’s going to cost you $50 to go to Tamworth to do the groceries or go to a job interview,” Mr Joyce said.

“They live in those places because the rent’s cheap but the rent’s cheap because it’s a long way from the services.”

Josh Frydenberg said the government’s focus was on creating an environment where those on Newstart were able to get jobs: “The other point is that over 90 per cent of people on Newstart are receiving support from other benefits.”