Centrelink payments to increase for millions of Australians, however there is debate over whether these increases are enough. Source: Nick-D, Wikimedia Commons
From the 20th of March, nearly 5 million Australians will have their Centrelink payments increased as rates are indexed in line with cost of living. However, there is debate over whether these increases are enough.
Centrelink payments set to be increased include the age pension, ABSTUDY, disability support pension, carer payment, JobSeeker, and parenting payment (for single parents).
These payments will increase by around 3.7 per cent, in line with Consumer Price Index (CPI).
Federal Social Services Minister Amanda Rishworth says “Australia’s social security system exists to support our most vulnerable citizens, and we know they are feeling the pinch.”
“Indexation is a pillar of our social security system and we want more money in the pockets of everyday Australians so they can better afford essentials.”
There is debate, however, around whether these increases will be enough to support Australians.
The Australian Council of Social Services (ACOSS) says that these indexation increases are not enough, and will do very little for people who need income support, particularly those on JobSeeker.
The JobSeeker rate is increasing by just $1.77 a day for people under 60 – taking the payment from $47.75 to $49.50 per day. This is 57 per cent below minimum wage and 34 per cent below the age pension.
ACOSS Acting Chief Executive Edwina MacDonald wants the government to increase the JobSeeker payment further, making it equal to the age pension.
“People on JobSeeker and related payments cannot afford to eat enough, cannot get essential medication or healthcare, and often go into debt to pay their energy bills,” MacDonald said.
“The only way to address this problem is to deliver a real increase to JobSeeker and related payments so that they are lifted to at least the same level as the pension.”
