ACOSS says a single payment would fix the "unfair" split between lower allowance payments and higher pension payments, addressing the current $255.50 difference between the dole and the disability support pension per fortnight for single people. The welfare body also argues that the current welfare system is based on an out-of-date idea that people who are able to work should get lower welfare payments because they will only need short-term income support.

ACOSS chief executive Cassandra Goldie said the social security system was ''complex, unfair and undermines employment participation". "The system is broken and tinkering at the margins won't fix it," she said. "People with the same financial needs receive vastly different payments."

The ACOSS recommendation for a common base payment mirrors the findings of a review Patrick McClure did for the Howard government almost 15 years ago. This was later developed by Tony Abbott when he was employment minister but not adopted.

ACOSS is also calling on the government to set up an independent commission to benchmark income support payments to broader community living standards.

But while ACOSS is leaving the new payment levels up to the future expert panel, it has renewed its call on the government to increase Newstart by $50 a week ''to reduce the most severe poverty''.