Skyrocketing everyday expenses are becoming harder to cover for those on Centrelink payments, according to a government agency.
The cost of living was the most pressing issue raised by the Economic Inclusion Advisory Committee (EIAC) in its fourth annual report, released ahead of the federal budget on May 12.
The committee called on the government to provide more in social benefits to catch up with soaring costs, such as rent and groceries.
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“The situation has since deteriorated and further increases are required,” the EIAC said.
It said the plea to raise payments for JobSeeker, Youth Allowance and the Remote Area Allowance (RAA) is the committee’s “top priority and repeats calls made in previous reports”.
The RAA was highlighted by the committee as being of “critical need for a substantial lift”, while adding to the Commonwealth Rent Assistance (CRA) would also help reduce stress on housing.
It also called for the government to “immediately stop all Centrelink payment penalties, including suspensions, reductions and cancellations related to compulsory activities”.
The government on March 20 increased Jobseeker payments to $808.70 for a single person or as high as $1,047.30 for a single principal carer.
But that amount was still well below the amount needed to comfortably afford to rent in Australia.
Anglicare Australia’s annual Rental Affordability Snapshot found just one of 49,000 rental listings across the nation being affordable to someone on Jobseeker.
That figure drops to zero for anyone on Youth Allowance, while just 0.2 per cent of rentals would be affordable for a single person on the Age Pension.
“The results are stark,” Anglicare Australia said.
“These are not new findings. For many of these groups, affordability has remained at or near zero for much of the time this data has been collected.
“Even households in full-time work on the minimum wage now face limited access to affordable housing.
“Families who once had a broader range of options can now afford a much smaller share of the market.
“Over time, the gap between incomes andrents has widened.”
