May 23 2018
Newstart desperation has Salvos under pump

Ballarat Courier

The government needs to consider increasing the Newstart allowance, say the Salvos.


Newstart recipients have $17 a day to live off once their accommodation is paid for, leaving them under extreme housing stress, paying bills late and struggling to feed themselves and their families, research shows.   

The Salvation Army says the government's repeat failure to increase the dole in the federal budget has placed further pressure on the charity to help those Australians experiencing such "devastating" daily hardship.      

"In the past, people would come maybe every few months when they got an unexpected bill; what we're finding now is almost every week people just can't meet living costs," Salvation Army major Paul Moulds told AAP on Wednesday.

"I think the desperation is greater and the struggle is worse."

More than half the 1267 Salvos customers who participated in the 2018 Economic and Social Impact Survey (ESIS) said their financial situation had become worse over the past year.

Federal Liberal MP Julia Banks earlier this month claimed she could live on the $40 a day for a single person without children looking for work provided by the Newstart allowance (NSA).

However this was rebutted by many including Labor leader Bill Shorten while former prime minister John Howard recently said the 24-year freeze on the rate had "probably gone on too long".

A rare alliance of business, industry and community groups were pushing for a $75 rise to the NSA pre-budget.

Mr Moulds said they will continue to push for an increase given the "huge difference" it would make to vulnerable people seeking help, including decreased emotional stress and the ability to purchase more food.

He said the government's argument the fortnightly payment is for transitional support, not to live off, is flawed.   

"The people who come to us are often beaten down by life," he said.

"They need to be in a mind space where their confidence, their self esteem is okay ... (and) they can focus their attention and energy on looking for work rather than trying to survive each week.

"In some ways that low payment works against their capacity to be able to go and convince an employer that they're in a state of mind and able to get a job."

THE SALVATION ARMY'S 2018 ESIS   

* 95 per cent of households under the poverty line

* Four of five respondents privately renting/paying a mortgage spend more than half their income on it

* A disposable income of $435 per week becomes $21 a day after accommodation costs

* Those on Newstart left with $17 to live off a day

* More than two thirds cite food affordability the greatest day-to-day challenge

* More than half can't pay phone, gas or electricity bills on time

When will the unemployed ever get a fair and just increase?.   

Baronvonrort wrote on May 23^rd, 2018 at 9:47am:

Baronvonrort wrote on May 23^rd, 2018 at 9:47am:
I personally dont care if it is a lifestyle choice which i highly doubt, and neither should anyone else. Countries which treat the unemployed and socially disadvantaged well have far fewer social problems within their societies. Inherent wealth and standard of living is not based on everyone being forced to work like a robot.

Baronvonrort wrote on May 23^rd, 2018 at 9:47am:

Shouting by bolding, highlighting and enlarging does not make your point better. It just makes you look like a child. I have removed your puerile shouting.

You have no clue what happens in the real world. None at all.

Increasing the dole is urgently needed because the unreasonably low rate of the dole is a barrier to employment. Housing costs have increased at well over inflation and this has not been taken into account when setting the rate of payments.

Jobs are scarce and there are not enough jobs for everyone. Employers discriminate against the unemployed when hiring, especially for people over 50. Casual work is rampant and it does not reliably allow people to get off the dole. Government red tape is a significant barrier to employment.

The correct way to get more people into work: create more jobs and make them available to Australians first. Make deep cuts to foreign work visas. Slash government red tape imposed on the unemployed. Ban discrimination against the unemployed. Scrap the privatised job services providers. Reinstate the Commonwealth Employment Service. Pay incentives direct to employers and recruiters when they hire unemployed workers. Consider a Job Guarantee to make work readily available to anyone who wants it.