Increasing the adequacy of JobSeeker and related welfare payments: Modelling Policy Options

Abstract

The Economic Inclusion Advisory Committee recommends increasing the JobSeeker Payment for working age Australians from 67 to 90 per cent of the Age Pension. EIAC is concerned that the existing rate does not provide many recipients with an adequate safety net leaving many people with insufficient funds to meet their basic living expenses. This research models a number of policy options that increase the rate of JobSeeker and related payments. The modelling includes the full 90 per cent EIAC recommendation but also lower cost options including staging the required increases over a 4-year period and immediately increasing the rate for recipients who have a partial capacity to work. All options lead to substantial reductions in poverty for recipients and provide meaningful financial gains for groups in society that are known to be disadvantaged such as single parents, low income renters, and indigenous Australians.