A $75 Newstart increase would provide huge boost to Tasmania’s economy

New data reveals that the Tasmanian economy would receive a huge boost if Newstart was increased by as little as $75 a week.

Welfare groups are pushing for a $75 increase to Newstart, which could inject $96 million into the Tasmanian economy.

TASMANIA’S economy would be boosted by almost $100 million in a single yearif the Newstart welfare payment was raised by $75 a week, according to analysis by Deloitte.

The Tasmanian Council of Social Service has pointed to the data in calling for an increase to the welfare payment relied accessed by more than 21,300 Tasmanians — the highest proportion of recipients of any state.

“Tasmania is in the midst of a housing and cost of living crisis that is compounded by our state’s low wages and the high level of job seekers and students accessing Newstart and other support programs,” TasCOSS chief executive Kym Goodes said.

“In refusing to increase this payment, the Federal Government is shifting the cost of supporting job seekers to Tasmania’s State Government which is presently experiencing crises in meeting Tasmanians’ need for housing support and health care.”

A single person on Newstart receives $277.85 a week, or about $39 a day. Pressure is mounting on the Federal Government to increase the payment by the equivalent of $75 a week.

Such an increase to the welfare benefit would boost the Tasmanian economy by $96 million, including $16.3 million in Launceston, $10.9 million in Glenorchy and $7.23 million in Hobart, according to Deloitte analysis commissioned by the Australian Council of Social Service.

A Tasmanian Government spokesman on Wednesday declined to comment on whether the State Government supported an increase to Newstart, saying it was “solely the responsibility of the Federal Government”.

“However at a state level, there are a range of significant concessions for Tasmanians needing support, including nearly $300 million in the recent State Budget to reduce cost of living pressures, including concessions for electricity, rates, water and sewerage and other services, and capping electricity price rises at no more than CPI,” the spokesman said.

The State Government has repeatedly claimed infrastructure projects forecast in the 2019-20 state budget will create 10,000 jobs. People would be supported into those jobs through investment in TasTAFE and $100 million in “skills and workforce development”.

“This includes funding for training and workforce development activities to build capability in leading sectors and regions, and for innovative projects that assist Tasmanians facing disadvantage to learn new skills and enter the workforce,” the spokesman said.