An advisory body to the Federal Government says Jobseeker and related payments are far too low. Photo: Julia Gomina.
JobSeeker and related working-age payments remain far too low and their base rates should be raised to 90 per cent of the Age Pension, according to the Economic Inclusion Advisory Committee’s latest report to government.
The EIAC provides independent advice to the Federal Government before every federal budget on economic inclusion and tackling disadvantage.
Its 2026 report was released publicly on 24 April and reiterates the findings of its previous three reports that social security payments do not properly support Australians who need them.
“Is the Australian social security system adequate enough to sustain the decent society we want?” the report asks.
“This central question about Australia’s welfare system was addressed by the McClure Review of 2015 which defined ‘adequacy’ as providing ‘income support recipients with sufficient support to ensure a basic standard of living in line with community standards’.
“The committee’s answer to that question is no.”
The committee’s report makes 13 recommendations, the first being that the government “commit to a substantial increase in the base rates of JobSeeker Payment and related working-age payments as a first priority” and lift related working-age payments.
Other recommendations include committing to a timeframe for full increases on those payments if they are to be staged; improve indexation arrangements for working-age payments; substantially lift the Remote Area Allowance; and increase Commonwealth Rent Assistance.
“As well as substantially increasing base rates of JobSeeker and related payments, the government should further increase the rate of Commonwealth Rent Assistance and better reflect contemporary rents paid,” the report states.
The government should also implement a major reform of Australia’s employment services system, the report recommends.
The Targeted Compliance Framework should be replaced and Disability Support Pension should be improved by removing the 30 hour per week work limit.
A number of the recommendations centre on addressing child poverty in low-income households as well as anomalies on the Child Support Scheme.
The committee found that 3.6 million Australians are living in poverty, including one million children and young people.
The EIAC repeated its previous recommendations that the Federal Government adopt official poverty measures for Australia to be reported upon annually and that it allocate sufficient resourcing to the Australian Bureau of Statistics for the necessary data.
Treasurer Jim Chalmers and Social Services Minister Tanya Plibersek issued a joint statement thanking the EIAC for its report and highlighting what the government is already doing in those policy areas.
“This report helps shape our thinking on how to best support vulnerable Australians, which we have been doing through an extra $11.5 billion investment in the social safety net in the 2023-24 and 2024-25 Budgets,” they said.
“We thank the EIAC for their important work and considered recommendations. The Albanese Labor Government is already acting on many of the issues outlined in the report by strengthening the social safety net, delivering cost of living relief, and investing in long-term prosperity.”
But ACT independent Senator David Pocock said the government’s refusal to implement a 25 per cent tax on gas export revenue means it is not serious about lifting Australia’s children out of poverty and looking after people who need support the most.
“Months into the current Middle East crisis the Albanese Government still hasn’t taken any meaningful action to support the most vulnerable in our community,” Senator Pocock said.
“These are the people who are least able to cope with increased cost of living as a result of the fuel crisis,” Senator Pocock said.
“Australia should be proud of the safety net we provide to those who have fallen on hard times and help them to build a better life rather than condemning them to economic and social exclusion.
“The modelling the committee has commissioned as part of this report shows that with additional revenue for fairer taxation we could easily lift more people out of poverty.
“A 25 per cent tax on gas export revenues would raise an estimated $17 billion annually.”
The Australian Council of Social Service has urged the Federal Government to act on the report’s recommendations.
“With some predicting unemployment could rise to between five and 6.5 per cent by the end of the year, we urgently need a stronger safety net and employment services that don’t punish people but help them to get paid work,” ACOSS chief executive officer Cassandra Goldie said.
“Cost of living support must be targeted to people already living in poverty, who face severely rising costs of fuel, food and rent.
“Income support payments are so low that people cannot meet their needs, let alone look for paid work with any dignity or stability. That has to change in this budget.”
Original Article published by Chris Johnson on Region Canberra.
