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Indexation grossly inadequate for people in need

ACOSS Media Release

ACOSS is urging the Albanese Government to move fast to substantially boost income support payments, with routine indexation grossly inadequate.

Income support payments including Youth Allowance and Austudy are adjusted for inflation on January 1 each year.

“The soaring cost of rent and other essentials is pushing people relying on JobSeeker, Youth Allowance and other income support payments deeper into poverty,” ACOSS CEO Cassandra Goldie said.

“The routine indexation of payments barely scratches the sides of what people living below the poverty line desperately need.

“These payments were already too low for people to afford the bare essentials of life before the cost of food, rent, medicines and energy began to soar, and they will be completely inadequate after indexation.”

The cost of renting a unit soared 23.7 per cent in the 12 months to September, while house rents jumped 13.2 per cent, across Australia’s combined capitals.

The default market offer for energy rose by about 20 per cent in some states. Meanwhile, rent assistance is just $92.20 per week for a single person without children.

Dr Goldie said the rate of income support must be lifted to at least $78 a day, in line with the Age Pension, and rent assistance by 50 per cent.

“With six per cent indexation, both Youth Allowance and Austudy will rise by $36.20 to $639 a fortnight for a single adult living away from home and single person, respectively. That amounts to just $45.64 a day.

“There are more than three million people living in poverty in Australia. More than 5.3 million said they could not afford a Christmas meal.

“We know how to end poverty, and that’s by raising the rate of income support. It is wrong for one of the world’s wealthiest nations to continue condemning people on low incomes to poverty while going ahead with wasteful tax cuts for the wealthy.

“Scrapping Stage 3 would curb inflationary spending while helping those on the lowest incomes to afford the absolute basics of life.

“The federal government must provide meaningful cost of living relief without further delay. One off help is not enough. We must urgently boost the rate of income support to at least $78 a day, the same rate as the pension.”

 

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5 comments

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  1. Phil Pryor

    “We” have little hope if “we” are a part of the large low group of nobodies, without a saddle and ride to belt the arse off a horse of acquisition in a rigged race. The donors, patrons, controllers, gougers, grabbers, assorted profiteers and parasites have all the money, help, colleagues, agents, backscratchers, partners and plunderers in a setup. Australia is a “good thing” for insiders…being honest, decent, generous, trustworthy is just not good enough, hey, Gina and Clive, and others…???

  2. New England Cocky

    Time to abolish Stage 3 Tax cuts ….. and use the savings to upgrade the income support for like Aged Pensions, Youth Allowance, Austudy and Disability Pensions. Poverty is unacceptable in Australia where corporations pay little/no income tax on our natural resources and alternative sources of taxation are available despite the protests of BIG 4 accountancy corporations practicing treason against Australian taxpayers.

  3. andyfiftysix

    As a pensioner, i am doing ok. But thats because i now live in Thailand and the ozzie pension does go a long way here.

    When i was in oz, i was hit from many sides. Impossible to find a rental ( i couch surfed in effect, but still payed my way). If i did find a rental, all my pension was gobbled up. I had a part time job with coles….a much maligned company. That 400-600 a week helped to pay for my living expenses. After 11 months, i had $500 in the bank. Now i didnt drink or go out with friends. Any trip to friends was an hr by public transport or $40 in petrol and tolls. I was too scared to drive because my commodore did drink a bit. I could imagine my life 3 yrs down the road when i cant work anymore. Yes i am fit for my age, but i am not bulletproof anymore.

    Now i planned my retirement here a long long time ago. I changed all my investment strategies to enable a happy retirement. If i maintained my previous strategies, I would still have the same difficulties living in oz. The pension is rigged so you can only earn a certain amount. Its rigged also because if you live OS its cut substantially….like $250 off a single pension rate per fortnight. $500 a month. Thats 25%( If your married, its assumed your wife works or is on the dole so its reduced again) .. Like i am not australian and i havent worked in os for 60 odd years. I am not a property owner and i dont take a rental from somebody equally as deserving. I paid taxes and i dont sponge off the medical system……..i save the government money.

    Yes i feel like i am in a priveliged position but only because of how older people are treated in oz. I Shouldnt be seen or heard.
    How dare i have a happy life. I dont claim to speak for all pensioners or unemployed, but if your on the bottom in oz, you are just a piece of shit to be shoveled on.

  4. Clakka

    Good onya andyfiftysix,

    Well done. But be mindful that as things get more desperate here in Oz, the gub-mint will likely surreptitiously amend the Foreign Accruals legislation to scrape back your happiness.

  5. Centrelink customer

    Message for Amanda Rishworth and Bill Shorten.

    Dear Amanda Rishworth and Bill Shorten,

    Services Australia forced me into significant debts as a result of their review decision made by an anonymous “delegate or authorised officer”. Both of you, Amanda Rishworth and Bill Shorten, have to explain why unqualified persons conduct formal reviews.

    Your website must provide very important information regarding review requirements. A formal review must be conducted by an authorised review officer (ARO). An ARO has to sign the decision and provide his/her full name and phone number, so that a welfare recipient can discuss the review decision if needed.

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