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Time for a better start for job seekers

What's wrong with Newstart?

Today, the single rate of Newstart is $244 a week - that's just 45% of the minimum wage and is more than $130 under the poverty line. On average, recipients are forced to live on less than $17 a day after they've paid their rent.

That's less than $17 a day for all other expenses, including utilities, transport, food, personal care and job-seeking; and doesn't leave scope to save for other major expenses such as car license and registration renewal, replacement white goods or a health crisis.

Look at how this compares to other people in the community - the average weekly expenditure of a single person under 35 (excluding rent) is $84 a day and the average weekly expenditure of a single person over 65 (excluding rent) is $53 a day.

Subsisting on such a tiny income over an extended period of time dramatically shrinks your world and for many leads to a cycle of debt, stress and social isolation that gets harder and harder to break out of.

This becomes more and more of a problem the longer you receive the payment, and more than 60% of the people who get onto Newstart are on it for more than 12 months, demonstrating the fact that the current system broken.

This is not enough to support people while they get a new start in life. It affects their ability to search for work, particularly if they face other barriers such as age, disability or education, as many long term recipients of Newstart do.

The Greens want to make considered changes to the system in order to help people find a job quicker and rely less on income support. To achieve this, we are seeking a $50 per week increase to Newstart, retaining the incentive to work but helping hundreds of thousands of Australians avoid the poverty trap. We are also seeking to improve the capacity of employment service providers, allowing them to work more intensively with job seekers and make it easier for people to find work.

We believe that a socially just, democratic society is one that guarantees an adequate income safety net for all Australians and allows people to live with dignity even when facing some of the toughest times of their lives. The complacency of the old parties in leaving people to languish in poverty or trapping them in debt is unacceptable.

 

Our Bill to increase Newstart by $50 per week

The Australian Greens have introduced legislation to increase Newstart & Youth Allowance by $50 per week.

This Bill is the latest step in the Greens' ongoing campaign to improve the support and assistance given to the nearly 1 million Australians on these lowest levels of income support.

A $50 increase for single people living on Newstart and Youth Allowance will ensure a fairer, and more straightforward social security system and better indexation will help maintain the value of an increase into the future.

We want to take this opportunity to help people while they study and become work ready, and then help them into secure work. This is the best way to reduce the incidence of poverty in our community and to address the barriers that currently keep people out of work.

Our legislation builds on the work of last year's Senate Inquiry (called for by The Greens) which found that Newstart was inadequate.

Although the inquiry was successful, the recommendations of the majority report were a big letdown for the Australians who rely on Newstart and other allowance payments. Despite concluding that the Newstart allowance is too low the report didn't go onto make the obvious recommendation to increase Newstart.

Hence, the Greens have stepped in to act, while the other parties drift further out of touch with Australians doing it tough.

Our Bill will:
- Increase the maximum single rate of Newstart by $50 per week
- Increase the maximum single rate of Youth Allowance (living away from home) by $50 per week
- Index these payments by the same method as pensions

 

Rachel & Adam lived on Newstart

Both Rachel and Greens Deputy Leader Adam Bandt have taken the challenge of living on the equivalent of Newstart - $35 dollars per day- in order to highlight the challenges faced by people receiving Newstart Allowance.

Find out more about Adam's week, or read Rachel's blogs from the week and her wrap-up of the lessons learned.


More information

For access to the Senate Inquiry report, including the Australian Greens additional comments to the report, visit the Senate Committee website. You can also watch Rachel's speech to Parliament where she responds to the Inquriy.

Read our Newstart Initiative
Check out our Newstart Campaign Leaflet
Check out our Newstart Postcard - Anyone Can Find Themselves Out Of Work

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