Despite calls for greater Centrelink payments, both Labor and the Coalition have firmly dismissed the idea of boosting financial support for vulnerable Australians.
Although Centrelink payments are adjusted regularly to reflect inflation, many believe these increases fall short of addressing the rising cost of living.
The Struggles of Retirees and JobSeekers
Retiree Marge, who voiced her concerns on ABC’s Q&A program, questioned how the government expects older Australians to manage on the current Age Pension.
“How are older Australians supposed to survive when the latest pension increase for a couple amounts to just 25 cents per day each?” she asked. She emphasized the difficulty in paying bills that have substantially risen. For Marge, after contributing to the workforce for 50 years and paying taxes, it felt unfair to be forced to closely monitor every dollar in her retirement years.
Another payment under scrutiny is JobSeeker, which recently increased by only $3.10 per fortnight. Economist Nicki Hutley shared that studies show investing an extra $1 in JobSeeker yields a $1.25 return in the community, in terms of better health, increased productivity, and reduced government expenditure.
Hutley argued that the current payments were inadequate for those living well below the poverty line, unable to afford basic necessities like rent, food, medicine, and education.
Recommendations for Change: The Case for Higher Payments
A report by the government’s Economic Inclusion Advisory Committee recommended raising JobSeeker to 90% of the Age Pension. This adjustment would increase the payment from $781.10 per fortnight to $942.39.
Many Centrelink recipients, such as Perth resident Damien, feel the current payments are insufficient, with Damien pointing out that an extra $3.10 per fortnight wouldn’t even cover the cost of two liters of milk.
“We’re supposed to be the lucky country,” Damien lamented, reflecting the frustration of many who feel left behind by the current welfare system.
Labor and Coalition Stand Firm: Rejecting Payment Increases
Despite the pressure from advocacy groups and the public, politicians from both Labor and the Coalition have remained steadfast in their rejection of further increases in Centrelink payments.
Clare O’Neil, the Minister for Housing and Homelessness, stated that Labor would not support another JobSeeker increase. “We are absolutely trying to find every single way to relieve pressure,” O’Neil said, yet emphasized the difficulty in meeting all social welfare demands.
Michael Sukkar, the shadow minister for social services, acknowledged the plight of the “working poor” but stressed the challenges of increasing social security payments. Sukkar noted the tough choices between increasing taxes to fund benefits and maintaining social support.
Alternative Solutions: Finding the Funds for Social Support
While politicians argue about the feasibility of increasing Centrelink payments, Richard Denniss, executive director of The Australia Institute, suggested that finding funds for the vulnerable could be simpler than imagined.
He highlighted that the Australian government spends $15 billion annually on fossil fuel subsidies, and questioned the decision to allocate $360 billion to the AUKUS nuclear submarines.
“We’re one of the richest countries in the world,” Denniss argued. “We can always afford it if it’s a priority.”
Comparison of Current Centrelink Payment Increases
| Payment Type | Current Amount | Recent Increase | Proposed Increase (JobSeeker) |
|---|---|---|---|
| Age Pension | $781.10 (single) | $0.25 per day | No change |
| JobSeeker | $781.10 per fortnight | $3.10 per fortnight | $942.39 per fortnight (proposed) |
The ongoing debate over Centrelink payments highlights the struggles faced by many Australians, particularly retirees and jobseekers. While the government continues to focus on maintaining fiscal balance, there is a growing call for more substantial increases to meet the rising cost of living.
Experts and advocacy groups argue that Australia’s wealth and priorities should make it possible to support the most vulnerable citizens, suggesting that there are alternative ways to find the necessary funding.
FAQs
Why are Centrelink payments considered insufficient?
Many Australians believe the current Centrelink payments do not cover the basic costs of living, such as rent, food, and healthcare.
What was the proposed increase for JobSeeker?
The Economic Inclusion Advisory Committee recommended raising JobSeeker to 90% of the Age Pension, which would bring the payment to $942.39 per fortnight.
Why do Labor and the Coalition reject higher Centrelink payments?
Both major parties argue that increasing payments further is not financially feasible, given budget constraints and the need to balance taxes and benefits.