Albanese Treasurer Jim Chalmers warns Centrelink JobSeeker payments are unlikely to get boost

The treasurer has turned down a recommendation to increase JobSeeker’s payments, despite a ministerial colleague admitting he couldn’t live on the meager amount.

The plight of those who make a living with Jobseeker was exposed on Tuesday in a report by the Economic Inclusion Advisory Committee.

The advisory body said recipients were facing “the highest levels of financial stress in Australia” and urged increases in “severely inadequate” benefits.

Treasurer Jim Chalmers has reportedly ruled out an increase and will adopt some of the more “modest” recommendations. Australian financial statement reported.

“While we can’t fund every good idea, measures to address backlogs will be included in the May budget,” said Dr Chalmers.

“This includes a price cut for utility bills that prioritizes payments and pensions.”

His comment came as NDIS Secretary Bill Shorten admitted he wouldn’t be able to live on the meager payment.

JobSeeker’s payments start at $631.10 every two weeks for a single person with no children and only increase to $745.20 every two weeks for a single person with children.

The report from the Economic Inclusion Advisory Committee said those living off a JobSeeker payment ‘are experiencing the highest levels of financial stress in Australia’.

“For the short-term unemployed, benefits are among the lowest of any wealthy country,” the report said.

Despite JobSeeker being indexed twice a year to keep up with inflation, the report found it was barely able to meet the “essentials of life” and lack of funding was a barrier to job-seeking.

The committee, led by former Secretary of Labor Jenny Macklin, proposed increasing JobSeeker to 90 percent of the retirement pension, currently at $1,064 every two weeks for a single person and $802 for someone in a couple.

This would cost $24 billion over the next four years, but with blowouts in other areas threatening to leave the budget in tatters, this seems a step too far.

The commission, led by former Secretary of Labor Jenny Macklin, made 37 recommendations costing an estimated $34 billion a year.

These included the abolition of the ParentsNext scheme, which prepares parents who care for young children to return to work, the activity test for childcare subsidies and the increase in housing benefit.

Senator David Pocock, who negotiated the establishment of the committee in return for his support of the government’s labor relations legislation, said he was disappointed by the Treasure’s response.

He urged the government to “rethink and prioritize those in our communities who need the most support.”

“It looks like this Labor government can find extra money for just about anything – from domestic expenses to submarines – but it won’t do more to protect the most vulnerable,” said Senator Pocock.

NDIS Secretary Bill Shorten was forced to admit on Wednesday that he couldn’t make ends meet on current payments from JobSeeker.

“I couldn’t live on it,” Mr Shorten admitted to Sky News.

Host Peter Stefanovic had asked the minister if he would push for an increase in payments.

“I have to put it in context, this is not the only problem there is. There are a lot of people who are struggling in a whole range of areas,” Mr Shorten said.

He defended the government that had to make difficult decisions.

“It’s very tough the moment you’re at or below the bread line,” he said.

“I’m not going to offend anyone and say it’s easy. I know that the government has taken measures, other than the specific ones requested by the economics committee.

‘Labour does what it can and we always try to do that.’

Figures released Wednesday show another explosion in federal spending, with elder care costs expected to rise 23 percent this financial year, adding $5 billion to the $24.8 billion forecast.

That’s without factoring in an awarded pay raise for aged care workers, which will cost $1.9 billion annually.

Dr. Chalmers accused the former Morrison government of pinching money when it came to care for the elderly.

“We owe it to our seniors to ensure adequate funding for aged care in this country. It’s what Australians expect and what our seniors deserve,” he said.

“Within the significant budget constraints we currently face, we will do what we can to help Australians, and we will do it in a focused, methodical, responsible and affordable manner.”

The budget also has to cope with the rising cost of the National Disability Insurance Scheme, which has already been predicted to cost an additional $8.8 billion over four years since the last federal budget in May.

With more people joining the NDIS, Labor has pledged to spend $158.2 million to hire 380 new permanent employees.

Total disability expenditures were expected to increase 9.6 percent between 2022-23 and 2025-26, as costs for each individual on the NDIS increased by 18.6 percent.

In the general outlook, the federal budget is expected to be stuck at a structural budget deficit of $50 billion.

Social Security and welfare spending is projected to cost $221.7 billion in 2022-2023, representing about a third or 35 percent of total government spending of $628.5 billion.