New research from the Australian Council of Social Service shows people receiving income support payments are going without food, struggling to afford rent and cutting themselves off from friends and family amid rising unemployment.
The Raise the Rate survey of 1,560 people receiving working age income support payments in June and July found:
- 95 per cent of people are struggling to cover grocery costs, with three in four cutting back on food, going without meals, eating smaller portions or redirecting money from elsewhere in their budget just to eat.
- 74 per cent don’t have $500 in the bank for an emergency.
- 97 per cent of people renting privately are in housing stress, paying more than 30 per cent of their income on rent, with more than half handing over more than 50 per cent.
- Nine in ten people say living on income support has left them socially isolated, avoiding social gatherings and seeing family and friends less often.
Well below the poverty line
JobSeeker sits at $404 a week and Youth Allowance at $342 a week, both well below the poverty line of $584 a week and a National Minimum Wage of $1,005 a week.
‘People are skipping meals, falling behind on rent and cutting themselves off from the people they love. This should not be happening in one of the wealthiest countries in the world,’ said ACOSS CEO Cassandra Goldie.
‘The prime minister and every member of his government should be asking how this can be happening on their watch, and what they are going to do to change it.
‘Across the country, people are angry because they cannot see light at the end of the tunnel as inflation bites,’ she said.
‘For someone on JobSeeker, cost-of-living pressure means skipping meals, not filling a prescription, and not seeing your friends because you cannot afford a coffee or a bus fare.
‘The serious level of destitution and deprivation across our country is a policy choice and a great stain on the government.’
Unemployment
The unemployment rate hit 4.5 per cent in July, the highest rate since the Covid pandemic. Since interest rates began to rise in 2022, 150,000 people have lost paid work.
From 20 September, JobSeeker will be more than $200 a week below the pension, the largest gap between the two payments in generations.
ACOSS is calling on the federal government to:
- Lift JobSeeker, Youth Allowance, Parenting Payment and related income support to parity with the pension and pension supplement, at least $600 a week on current rates, and index payments to wages as well as prices.
- Improve the adequacy of supplementary payments, including lifting the maximum threshold for Commonwealth Rent Assistance by 60 per cent, establishing a $60 a week Disability and Illness Supplement, and providing a Single Parent Supplement benchmarked to the real costs of single parenthood.
- Reform Disability Support Pension eligibility so people who score 20 points across the impairment tables can access the payment.
- Index Family Tax Benefit to wages and prices, whichever is higher.
- Reduce or abolish waiting periods for newly arrived migrants accessing FTB, Paid Parental Leave, Special Benefit and Carer Allowance.
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