Liberal MPs Dean Smith and Russell Broadbent are calling for the unemployment payment to be lifted

This article is more than 1 year old

This article is more than 1 year old

Liberal MPs have joined a group of Nationals calling for a lift to the Newstart payment, with one suggesting funds be diverted from the multibillion-dollar Jobactive system.

The Victorian MP Russell Broadbent, who represents the regional seat of Monash, said he was concerned the current Newstart rate could be entrenching disadvantage by stopping people entering the workforce.

“It is hard at that level of income, especially in regional areas, to have enough money to get out and find a job,” he told ABC TV.

“I have to question the Jobstart agencies as to their effectiveness, and would money be better spent directly with those who are unemployed, enabling them to get job opportunities.”

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He pointed to a report completed by the Committee on Intergenerational Welfare Dependence tabled in February which called for a review of the adequacy of social security payments.

The Liberal MP Andrew Wallace said that if the payment was preventing people entering the workforce then an increase should be considered, but he said that he had not seen any evidence this was the case.

“If it is so low that it is stopping people from getting into the workforce then yes, that is something we should look at, but that is very subjective though,” he told Guardian Australia.

“I think it is always a fine line between government supporting people who are in genuine need and ensuring that there is enough incentive to go out and get work.”

The government has pledged to overhaul the private Jobactive service, which costs $7.6bn over five years and which has been criticised for failing the long-term unemployed.

A government review found it too restrictive for both job seekers and employers, with the 20 jobs a month requirement having turned into a “tick the box” exercise.

But amid growing calls from politicians, the welfare sector, business and seniors groups for the $275 a week payment to be increased, the government has so far remained firmly opposed.

The Nationals MPs Barnaby Joyce and Matthew Canavan have both said the payment should be increased, saying it is too low and the funding boost would also stimulate the economy.

The Western Australian Liberal senator Dean Smith was the first Liberal MP to break ranks on Monday, saying the government should heed the call of Liberal “legend” John Howard and move to boost the payment.

“I am someone who believes the Newstart allowance amount must be more than reviewed – which was Labor’s lame position – it should be increased,” Smith said.

“What the Reserve Bank governor, Mr Philip Lowe, has been saying in terms of the importance of wages growth in our country is something that should weigh heavily on the minds of every Coalition member and senator.

“I do think that these matters should be top of mind. They do deserve careful consideration,” Smith said.

The comments came amid debate on the Greens senator Rachel Siewert’s private member’s bill to increase Newstart by $75 a week.

Siewert said that Labor and some in the Coalition were “clearly feeling the heat when it comes to the abysmally low rate of Newstart”, urging others to join the campaign to increase the payment.

“It is untenable that people on Newstart continue to live in poverty, the government should be moving immediately to address the appalling low rate of Newstart,” Siewert said.

However, the government has been unmoved by the debate, with the employment minister, Michaelia Cash, telling the Australian Financial Review that “every Labor member talking about Newstart is a member not talking about opportunities to get people into employment”.

“We are a nation defined by our workers and our aspiration, not our welfare system and apathy,” she said.