Federal budget: Massive increase to Centrelink payments revealed

Hundreds of thousands of Aussies will score a welcome boost to their welfare payments after rumours sparked furious backlash.

Hundreds of thousands of Aussies will soon score a much-needed boost to their welfare payments in an attempt to ease cost of living pressures.

In recent days, reports emerged that the federal budget would likely include an increase of $3.70 a day to JobSeeker payments – however, it was initially expected that increase would be restricted to over 55s only.

But after widespread speculation, it has now been confirmed that all JobSeeker recipients will see their payments go up by $40 per fortnight, as well as those on Youth Allowance, Austudy and other income support payments.

Until now, those aged 60 and over on long-term payments have received a higher rate of pay in acknowledgment of the extra barriers they face in securing a job.

But with over 55s the biggest group of Aussies on JobSeeker, that cohort will now be eligible for that extra support as well.

Treasurer Jim Chalmers handed down the budget on Tuesday. Picture: NCA NewsWire/Martin Ollman

Earlier this week, Sky News Political Editor Andrew Clennell claimed that the budget would include an increase in JobSeeker payments “across the board” of up to $40 a fortnight, which would be “ratified” in an Expenditure Review Committee meeting.

“I am told the JobSeeker increase could be up to $40 a fortnight,” Mr Clennell said.

“To deliver a surplus and not deliver such assistance when JobSeeker is just $49 a day would have really angered the Labor base.”

Mr Clennell was on the money, with Treasurer Jim Chalmers confirming the news on Tuesday and claiming a Labor Government would “always strive to help those who need it the most”.

He said in his budget speech that the JobSeeker boost was all about “helping to deliver a much-needed $4.9 billion boost in support to around 1.1 million Australians looking for work, studying or doing apprenticeships”.

Advocates had argued that JobSeeker should be raised for everyone. Picture: Glenn Hampson

Rumours spark fierce backlash

It was previously speculated that the JobSeeker rate would be bumped up from its current rate of just under $50 a day for around 200,000 long-term unemployed Aussies over the age of 55, which would have meant that more than 680,000 other jobseekers would have received nothing.

That sparked significant backlash from welfare activists and politicians – including some Labor MPs – who argued that a lift in benefits should apply to all groups.

Australian Council of Social Service (ACOSS) CEO Cassandra Goldie previously claimed that limiting the increase to over 55s would mean “around four in five people struggling to survive on the woefully inadequate JobSeeker and related payments would be left behind”.

Instead, ACOSS pushed for all social payments to be raised to $76 per day.

“Until JobSeeker, Youth Allowance and related payments are substantially increased for all, we will continue to see people going without food and essential medication as well as being unable to afford to keep a roof over their head,” Dr Goldie said.

An interim report tabled by the Greens-chaired Senate Community Affairs References Committee this month also found that urgent government action on poverty for all demographics was needed.

Australia is in the midst of a cost of living crisis. Picture: iStock

“When we have millions of Australians on starvation-payments, people trying to escape domestic violence, young people struggling with their mental health and dropping out of uni because they can’t afford it, and thousands of people who can’t afford food as well as their medicine, it’s hard to understand how the Labor Government can morally justify not raising income support,” Greens senator and committee chair Janet Rice said ahead of Tuesday’s budget.

The Greens recommended that the base rate of JobSeeker and other support payments increase to $88 a day, regardless of age.

Dr Chalmers previously weighed in on the unique challenges facing many older Australians, citing “expert advice” which showed the group “that’s most likely to be long-term unemployed are people over 55” – a cohort that is also “dominated by women”.

Originally published as Federal budget: Massive increase to Centrelink payments revealed