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Jobseekers get about $345 less than pensioners each fortnight. This gap is hurting, and is set to widen without change

16 4
26.04.2024

The government’s Economic Inclusion Advisory Committee has just published its second report. It was set up by Treasurer Jim Chalmers and Minister for Social Services Amanda Rishworth in 2022 to provide:

non-binding advice on boosting economic inclusion and tackling disadvantage, including policy settings, systems and structures, and the adequacy, effectiveness and sustainability of income support payments.

I am one of the members.

This year, the report tackled a burning question: why has the gap between unemployment payments and age pensions widened?

Unemployment and related payments for working-age people were given a welcome increase in the 2023–24 budget. But they remain well below pensions, and far from adequate on all measures.

After the latest regular indexation increase in March, a single jobseeker gets about A$258 per fortnight less than a pensioner in basic payments, and $345 per fortnight less than a pensioner on payments including supplements.

It’s important to understand what’s led us to this point.

The committee’s first report last year noted that the amounts paid are set through a complex historical process that has involved “long periods of inaction” interspersed with........

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