The party will attempt to wedge Labor and capitalise on a growing agreement that the benefit is inadequate

This article is more than 2 years old

This article is more than 2 years old

A bill increasing Newstart by $75 per week will be placed before parliament later this year, as the Greens attempt to wedge Labor and capitalise on a growing push for change.

But the Greens were dealt an early blow on Thursday, when a motion calling on the Senate to support the Newstart increase was voted down comprehensively, with the help of Labor, most of the crossbench, and the Coalition.

Former prime minister John Howard unexpectedly breathed new life into the campaign to increase the dole on Wednesday. Howard, speaking at a post-budget breakfast in Melbourne, said a 24-year freeze on the Newstart rate had “probably gone on too long”.

“Yeah, I think there is an argument about that, yeah I do,” Howard said. “I was in favour of freezing it when it happened, but I think the freeze has probably gone on too long.”

Howard’s comments add to a broadening consensus that Newstart is inadequate, and follow a similar assessment by Deloitte Access Economics last month.

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The Newstart payment has not increased in real terms since 1994, and sits at $40 a day for single recipients. Welfare advocates say it is at poverty levels, and is not enough to meet even the most basic costs of living.

Labor have already signalled they believe the payment is too low, as have key crossbench senators Tim Storer and Derryn Hinch.

The Greens have now announced they intend to reintroduce a bill increasing the single rate of Newstart by $75 per week.



Greens senator Rachel Siewert said the bill will be reintroduced in the second half of the year.

“It is time we stopped leaving struggling Australians behind and for Newstart to be increased to a level where jobseekers can live with some dignity,” Siewert said. “We are a kind and generous nation and to leave Australians trying to find a job languishing well below the poverty is a national shame.”

Quick guide 2018 budget at a glance Show Hide • Tax cuts for middle low and middle income earners with most saving between $200 and $530 a year on their tax bill through a tax offset • Ambition for a flat tax rate by 2024 of 32.5% for everyone earning between $41,000 and $200,000 • $4.5bn earmarked for roads, but major public transport projects will have to wait years for the lion's share of funding announced in the budget. $24.5 billion has been directed to new commitments, but only $4bn of that is being spent in the next four years • The controversial robodebt electronic debt recovery is to continue • Newly arrived migrants will have to wait another year to receive welfare assistance, while refugees will see their wait for Newstart doubled to 26 weeks • Superannuation funds to be banned from charging exit fees and fees for accounts under $3,000 will be limited to 3% • ABC to have its funding cut by $83.7 million over three years. Meanwhile a Captain Cook statue in Scott Morrison’s electorate is to be built at a cost of $25m • ‘Black’ economy is under the spotlight with government planning to claw back revenue it is losing to illegal tobacco. Home Affairs estimates it can earn $3.6 billion from a crackdown • Pensioners will be able to earn an additional $25 a week without reducing their pension. The pension loan scheme is also being expanded, which allows pensioners to use their homes as equity to boost their retirement incomes • $1.6bn is being spent to support an additional 14,000 additional high-level home care packages. A further $82.5m is being spent on mental health services for older Australians, including a $20m “loneliness” package, to help people “remain connected to their communities”. • New measures to help crack down on multinationals avoiding tax commitments. The government is also moving to add to previously announced measures to make sure income earned in Australia, can be taxed by Australia.

The Australian Council of Social Service (Acoss) led the pre-budget campaign to increase Newstart. Its chief executive, Cassandra Goldie, said a large number of people made it clear, via social media and by contacting her organisation, that they’d rather forgo their $10 per week tax cut to help the most disadvantaged.

“The treasurer said ‘people are asking us what’s in it for me?” Goldie told Guardian Australia, referring to Morrison’s budget speech.

“I think he’s got us wrong. I think what people ask is what’s in it for us as a community.”

On Wednesday, treasurer Scott Morrison defended the decision to leave Newstart untouched, saying 95% of recipients also received other forms of assistance or payments.



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“Newstart is not intended to be a payment you live on, it supports you while you get yourself back into work,” he said.

“Our priority is to provide tax relief for working Australians and ensure we create a stronger economy so we can provide those people not in work with the best from welfare which can be provided, which is a job.”

Labor wants a comprehensive review of welfare payments before deciding on an increase to Newstart.

Senator Doug Cameron conceded the rate was currently too low to live on.

“You can’t live on $40 a day, Labor recognises that, Labor concedes that,” Cameron told the ABC. “We just want to make sure that we do the right thing across the whole system.”

