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ABC News
ABC News
Business
political reporter Tom Lowrey

Why is JobSeeker going to be reviewed? Will it go up?

Starting next year, the income support payments millions of Australians rely on will be looked at a little more closely.

Ahead of every federal budget, when the government decides how it will spend its money in the year ahead, an expert committee will look at the rate of payments like JobSeeker.

It will have its say on whether those payments are adequate, and its advice will be published two weeks out from the budget.

It's part of a deal brokered by independent senator David Pocock to get the government's centrepiece industrial relations bill passed through parliament this week.

And it's aimed at ensuring there's a conversation about JobSeeker and other income support payments at least once a year.

But the government has been clear — while it will listen to whatever the experts recommend, it absolutely won't be bound to follow the advice.

So what might these reviews (realistically) achieve?

An independent take, before a political call

The annual review will look into every income support payment the government provides, and whether it needs to be lifted.

That includes payments like JobSeeker, the aged pension, the disability support pension and the parenting payment.

The review will be conducted by a committee of up to 12 people made up of academics, economists, advocates and leaders from both business groups and unions.

It will be in place, in an interim capacity, before the end of the year.

This was not the government's idea, but the government has been keen to make clear it's happy to set up the committee, inform its work and listen to its advice.

But Prime Minister Anthony Albanese has also pointed out he won't be bound by anything it has to say.

"It's government that makes decisions, and government will continue to make decisions," he said. 

"But it should make decisions based upon the best possible advice."

Senator Pocock, who drove the establishment of the new committee, concedes it might not lead directly to an increase in income support payments.

But he is hoping the reviews will help build public pressure and that might force change.

"That's my hope," he said.

"They'll publish their recommendations at least two weeks before the budget so that there will be a level of transparency there. 

"And then the government will have to make the case as to why they are or are not taking on board those recommendations."

How likely is it JobSeeker will rise?

Senator Pocock has been outspoken about his desire to see the Jobseeker rate lifted, arguing Australians are living in poverty.

The rate is currently set at $668.40 a fortnight for a single adult, or $47 a day.

According to the OECD's definition of poverty (half the median household income of the total population), the poverty line in Australia is $489 a week for a single adult, or just under $70 a day.

Advocacy body ACOSS estimates one in eight Australians are living in poverty, and one in six children.

Mr Albanese has said it's clearly too many.

"I accept that there are far too many people in Australia living in poverty and struggling to get by, I accept that," he said.

Welfare spending is an enormous part of the federal budget.

At nearly $230 billion this financial year, social security and welfare (which include schemes like the NDIS) make up more than a third of the budget as a whole.

The prime minister has indicated that while this is a policy area where the government would like to do more, it can't for now.

"There's more we would like to do," he said. 

"We do have fiscal constraints, and we do have to make sure that any action of the government bears in mind inflation and the economic circumstances which are there."

Welcomed by some, labelled 'cheap' by others

ACOSS has campaigned for some time for a significant lift in the Jobseeker rate, suggesting it should rise to $73 a day (above the OECD's poverty line).

It welcomed the new annual rate reviews, labelling them a "game changer" in efforts to have the rate rise.

CEO Cassandra Goldie said whatever the experts recommended, they couldn't be ignored.

"It will be crucial that the government acts on the committee's recommendations, which will no doubt shine a light on the inadequacy of JobSeeker and related payments to meet essential costs," she said.

But the Greens have been fiercely critical of the reviews.

The party has campaigned to see the JobSeeker rate nearly doubled to $88 a day, arguing the income support system is "deeply broken".

Greens employment spokesperson, Senator Barbara Pocock, said David Pocock shouldn't have settled for a review.

"It's a cheap concession, it's a committee," she said. 

"It's not an increase in JobSeeker and that's what we need."

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