Welfare organisations, economists and even some business groups were dismayed this week when the government announced a $50-a-fortnight increase to the base rate of the jobseeker payment.
Given the current coronavirus supplement is worth $150, many consider the increase to $620.80 (taking into account scheduled indexation in March) a cut. Certainly the boost falls well short of the policy proposals put forward by social service groups and several experts.
And some have noted the contrast with the daily entitlements enjoyed by the nation’s federal politicians.
Anne Ruston, the social services minister, has heralded the $50 boost as the largest since the 1980s, a fact that reflects the lack of a “real” terms rise since the early 1990s. Ruston, and the prime minister, Scott Morrison, have also continued to argue that the “$40-a-day” figure quoted by welfare groups – soon to be $43-a-day – does not reflect the many “supplementary payments” that are also paid to jobseekers.
‘$43 a day’: what do jobseekers get?
While it’s true that supplementary payments are numerous, arguably they do little to boost the incomes of people on jobseeker, as Guardian Australia has outlined before. Morrison himself confirmed the average value of those additional supplements was $13.03 a fortnight, or $0.93 a day.
Rent assistance, which was paid to about 570,000 of the 1.3 million jobseekers on the books in October, is worth an extra $139 a fortnight, or $10 a day.
It means many single jobseekers will likely get $44 a day, or if they rent in the private market, it’s $54 a day.
So how does this compare to the perks politicians receive? These might be considered the “supplementary payments” that they get on top of a $211,250 base salary. It’s a question Ruston has faced in two separate interviews this week.
The $291-a-day Canberra travel allowance
As the Independent Parliamentary Expenses Authority notes, MPs and senators may claim an “allowance for accommodation, meals and incidental expenses” whenever they stay away from home, such as in Canberra for parliamentary sittings, or other work trips.
Politicians get $291 a day for staying in the nation’s capital, but the rate – which is set by the Remuneration Tribunal – is higher in the other capital cities.
In cases where the commonwealth pays for the accommodation of a minister on a work trip, the MP can still claim up to $188 a night to cover meals and incidental expenses.
Similarly, if an MP stays with a family member or friend on a work trip, they may still claim a “non-commercial” rate of travel allowance – about $130 a day.
This does not include Canberra, where politicians may still claim the full rate, even if they stay with a friend or family, or in an investment property that they, a family member, or a parliamentary colleague, owns.
As some infamous cases have highlighted, politicians may also claim the costs of up to two home telephone services, and can request a private-plated standard vehicle.
Some point out that the entitlements provided to politicians – such as travel and meal allowances – exist in workplaces outside parliament, and that such expenses can otherwise be claimed by other workers as a tax deduction.
Still, jobseekers must cover all their costs on about $54-a-day if they get rent assistance, while a politician staying in Sydney would get $415 a night to cover accomodation, meals and expenses.
It is also worth noting that while the jobseeker payment was 10.8% of a politician’s base salary in 1994, and it will be 7.6% from April with the $50-per-fortnight boost.
What does the government say?
On Tuesday, ABC 7.30 host Leigh Sales asked Ruston: “A politician receives more than $280 per day in travel allowance when they are in Canberra on top of their salary. Why is that fair?”
Ruston declined to engage with the question directly, but emphasised the government was committed to providing access to jobs so “people can have the kind of life outcomes you and I enjoy, Leigh”.
Asked a similar question by Rafael Epstein on ABC Radio Melbourne, Ruston replied: “I’ve always said that living without a job would be extremely difficult.”
Epstein pressed her: “You can get an extra $290 tonight for staying in Canberra, you could stay at a friend’s house and get that money. And someone on jobseeker has to do everything on $50 a day. Do you think that’s fair?”
Ruston replied: “I think the most important thing is for the government to be able to balance out the initiatives that are put in place that are paid for by Australian taxpayers.”
