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The Canberra Times
The Canberra Times
National
Miriam Webber

'Raise the rate': Call for urgent lift in welfare payments

Dr Cassandra Goldie, chief executive of Australian Council of Social Services. Picture by Karleen Minney

Advocates for Australians living in poverty spoke through emotion at a public hearing on Monday, as they called for the government to raise social welfare payments.

Kristin O'Connell, from The Antipoverty Centre was briefly overcome with emotion as she delivered an opening statement compelling senators at the committee hearing to "raise the rate".

"This government has had a lot to say about its values but it has done little to live up to that rhetoric," she said.

"We urgently need income support payments lifted to at least the Henderson poverty pay line like they were overnight in 2020."

"If you want to leave nobody behind - poverty is a political choice, don't make it yours - raise the rate," she said.

The Henderson poverty line, one of the poverty measurements used in Australia, was developed in the 1960s and is updated quarterly by the University of Melbourne.

Australian Council of Social Service chief executive Cassandra Goldie gave examples of people who couldn't afford to buy medicines, eat nutritious meals or live in stable accommodation, citing one example of a woman forced to live in a shed, with no heating or air-conditioning.

"As I hope senators from this committee will hear over and over again, we are very clear about the solutions to lifting people out of poverty," Dr Goldie said.

"In 2020 poverty among people receiving income support as their main income source, was massively reduced, literally overnight - temporarily however - thanks to the coronavirus supplement."

ACOSS has recommended the government lift the base rates of income support payments, such as JobSeeker and Youth Allowance, to the same level as the single pension ($513 per week, including pension supplement), and index all working-age payments twice a year in line with Consumer Price Index.

Commonwealth Rent Assistance should also be increased , the organisation says.

"JobSeeker remains the second lowest unemployment payment among wealthy countries as a proportion of average earnings and is currently just 42 per cent of the minimum wage," Dr Goldie said.

Despite a looming revenue crunch and competing budget priorities, the Treasurer Jim Chalmers is facing increasing pressure to address welfare payments in May.

Dr Chalmers has said recent rate rises have shown the need for "spending restraint" in the upcoming budget.

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