Welfare recipients and the unemployed could be among the big winners as Anthony Albanese’s government looks to increase support payments in next week’s federal budget.
Treasurer Jim Chalmers has confirmed that some of the 22 recommendations made by the Economic Inclusion Advisory Committee (EIAC) will be adopted next Tuesday.
He remains reserved about which recommendations will receive the green light, but has ruled out adopting them all.
One of the EIAC’s recommendations was a “substantial” increase in the JobSeeker payment to 90 per cent of the age pension.
Payments would go from the current $762.70 per fortnight for single people to $1,004.67, an increase of $121 per week or $17 per day.
Treasurer Jim Chalmers will adopt some of the 22 recommendations made by the Economic Inclusion Advisory Committee (EIAC) in next week’s federal budget.
“There will be additional measures in this budget that are cognizant of the recommendations that have been made to us by that important, well-considered and well-informed committee,” Mr Chalmers told reporters on Thursday.
“We take it seriously.”
He warned that the government cannot afford to adopt all the recommendations.
‘In some cases, announcing future directions is justified. In others, we have to be a little more careful because we have to be aware of the budget situation and what we can afford,” added Mr Chalmers.
“We don’t want to over-promise or under-deliver when it comes to our most vulnerable people.”
The Economic Inclusion Advisory Committee called for a “substantial” increase in the JobSeeker payment (file image)
The EIAC suggested JobSeeker could be rolled out in stages rather than a single increase, but was firm on committing to a specific time period if it went that route.
About 740,800 Australians were receiving JobSeeker payments in March last year.
Others include increasing rental assistance payments, investing in social and affordable housing for Indigenous people, and reforming the employment services system.
Earlier this week, Chalmers revealed that one of the main objectives of the budget will be to fight inflation.
‘More will be spent [and] There will be more moderation in spending… But this is not the time for scorched earth austerity,’ he said.
“It would not be wise, when people are having a hard time and when the economy is weak, for us to slash and burn this budget.”
One of the recommendations included a call for a “substantial” increase in jobseekers’ payments, which would increase by an additional $121 per week or $17 per day.
An increase in Commonwealth Rental Assistance is also on the cards, with Finance Minister Katy Gallagher arguing it could improve women’s economic security.
‘Commonwealth Rental Assistance… is intended to support many women and many women who are single mothers,’ she told ABC’s Insiders earlier this week.
“We look across the board at what’s possible, but we’ve made no secret that we want to make sure we’re driving economic equality for women…part of the answer is the payments system.”