Newstart Allowance

Ms BEDFORD (Florey) (15:41): The word is growing in the community—Newstart is no start at all and should increase. The Business Council of Australia and even former prime minister Howard agree.

Through the work of the Anti-Poverty Network SA, I have had the opportunity to meet amazing people from all sorts of backgrounds and all walks of life—single people and those with families, all battling to survive and raise awareness. Their numbers are rising and things have to change. I have listened and had the privilege to hear testimonials from people trying to survive on a weekly benefit of $273—a staggering $160 below the poverty line and well below the minimum wage of $672. Michelle tells us:

The buying power of those on Newstart is very low when over 50% goes on rent and [then] 20% on bills, that leaves very little money for food and all the extras. Cuts to welfare and the low rates of Newstart, including family payments—putting women and single parents with children on the dole—means people are more vulnerable to reduced nutritional status, health dysfunction and increased financial hardship, especially with programs and ideas like the cashless welfare card and drug trials. The rate of Newstart is not adequate to house, feed and water those out of work trying to find a job in a time of zero job creation, aside from mining.

Michael is a counsellor who offers a free service to vulnerable people in country NSW, South Australia, Tasmania and Victoria. He said:

In my experience most cannot even afford rent or the basic necessities of life. In country areas it’s worse than metropolitan areas. Suicide and ideation of suicide is up to two or three times worse, largely due to their lack of income and the constant rejection when they apply for jobs. Money paid out as unemployment benefits is spent quickly and for the most part locally! An increase in Newstart would provide a direct, significant boost to small commercial and other businesses in depressed areas.

Claudia said:

Newstart was last raised in the year I was born. I’ve seen the cost of living rise every year. I’ve endured the low rate of Youth Allowance. I am scared of ever enduring the low rate and added demoralising process of Newstart. My friends and loved ones on welfare deserve better. We all do.

And I had a note from Alayne. It reads:

Dear Frances, can you please look into the very low rate of Youth Allowance and Newstart Allowance and the shortage of housing—plus help bring back adequate SA Public Housing Trust properties. The situation is dire and urgent.

Tammy said:

It is not a matter of how to get people to contribute, people want to. It’s a matter of empowering people to do so. All people deserve to have access to the basics needed to survive. We all deserve enriched communities where all people are encouraged to and are supported in being fully able to participate. The matter is not how we can afford this. It is obvious we simply cannot afford to continue to impoverish not just those on Newstart Allowance, but ultimately whole communities and all of Australia.

Dave B said:

Almost 70 years ago, after two world wars and hundreds of millions dead, Australia and the world signed the Universal Declaration of Human Rights. Not an aspiration—a declaration; a commitment to fulfil and protect the basic human needs and dignity of every living person. Today in Australia, the dismantling of public institutions and social safety nets combined with the artificial scarcity created in our housing and labour ‘markets’ mean that the denial of human rights is guaranteed and entrenched—not by accident but by design. We need to protect housing as a human right, not an investment opportunity, and we need to make our safety net safe for everyone, because until they are, they will never be safe.

Josh wants to tell us:

My work as a community and rehabilitation support worker in the Elizabeth region gives me an insight into poverty and its dire effects on those who find themselves in it. Their reality is brutal and inhuman. This is because living in poverty does not really allow for psycho-social rehabilitation and inroads toward recovery.

If 'a society is judged by how its vulnerable are treated' well, our society needs to begin making amends—we can raise Newstart as far as possible towards the poverty line. Every one of us is diminished when any one of us is in poverty.

Alicia Burns asked me to say:

Newstart Allowance has not been raised in real terms since before I was born. Youth Allowance is even lower than Newstart. Being on Youth Allowance, my budget leaves me with thirty cents to spare each month, but only if I skip meals and don't pay rent or bills. It's not good enough. These payments need to rise!

Lastly, from Catherine:

I work as a solicitor and assess claims for victims of crime compensation. Crime affects all social and economic sectors of the public, it is clear crime, particularly crimes of violence, including domestic violence, dis-proportionately affect those in receipt of welfare payments or those in poverty. Increasing Newstart payments would in my view allow those that are victims of crime to escape violent and abusive situations.

An increase to Newstart will improve the lives of all Australians and ultimately reduce the money required to be spent on rehabilitative and correctional services. It will help break a worsening problem of domestic violence in Australia. Please support the Anti-Poverty Network.

These testimonials are from the heart. They are lived experiences and speak for themselves. Newstart does not give people the opportunity to move into paid work, considering that at least eight people are after every job. Poverty is not a choice, especially where children are involved. State parliament needs to get behind local government and support calls to the federal government for an increase in Newstart.