'You can buy very little for 50 cents': Newstart increase attacked
19 March 2018
Sydney Morning Herald
A 50¢ increase in the Newstart allowance from Tuesday will be almost negligible for Sally Allain who struggles to stay out of homelessness on an income that puts her below the poverty line.
The single mother, who relied on Newstart for 18 months until October, still needs it to top up her income as a cleaner in an aged care home.
The Brotherhood of St Lawrence said the Newstart allowance for a single unemployed person without children would increase by only 50 cents a day from Tuesday. This would add $7 to the base fortnightly payment, bringing it to $545.80.
Sally Allain: 'For 20 years, I have not been able to find a job that pays enough or has enough hours.'
“The inadequacy of Newstart is brought into stark relief by this 50 cent a day increase for a single unemployed person," Brotherhood executive director Conny Lenneberg said. “You can buy very little for 50 cents a day.
"Such a modest increment will make no material difference to people living in poverty on Newstart."
New analysis from the Brotherhood of St Lawrence shows more than 28 per cent of 223,038 people who sought help from homeless services across Australia between 2016-2017 and who disclosed their income said they were on Newstart.
Newstart is a welfare payment for people who are unemployed or with income or assets below a certain amount. You can get Newstart while you earn money from a part time or casual job.
“Rising homelessness is directly connected to the inadequacy of Newstart which is 20 per cent below the poverty line for a single person. The system needs urgent repair,” Ms Lenneberg said.
Ms Allain, 54, said she had received $666 per fortnight on Newstart, including additional rental assistance, while having to pay $520 of that on rent for a two-bedroom flat in Geelong.
She now earns up to $1000 a fortnight in her new cleaning job, but her weekly hours vary.
"For 20 years, I have not been able to find a job that pays enough or has enough hours," she said.
"I haven't managed to find employment that took me above the minimum wage.
"I am anxious about homelessness and have spent all my savings."
Before moving to Australia she had worked as a secretary for Ernst and Young, but has been unable to find enough hours of work since having a child and moving to Geelong about 20 years ago.
She sold a house she bought in West Australia where she worked as a funeral director and has now spent virtually all of those savings on living expenses over the years.
The Brotherhood of St Lawrence said the base rate of the Newstart Allowance had not increased in real terms since 1994.
Minister for Social Services Dan Tehan said rates of Newstart Allowance are indexed twice a year in-line with the Consumer Price Index.
"More than 99 per cent of Newstart recipients receive additional payments and supplements based on their circumstances," Mr Tehan said.
"Newstart is designed to support individuals into employment. Around two thirds of those granted Newstart exit income support within 12 months.”
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