JobSeeker changes explained: What does it mean and why does it matter?

Emily Graetz explores the ins and outs of government welfare and the attitudes that limit more substantial reform. 

You might have heard the news about some proposed changes to the JobSeeker payment. Last week, the government announced it would be increasing the fortnightly payment by $50. This hasn’t come out of nowhere though - in fact, many politicians, advocates and interest groups have been calling for an increase to JobSeeker for years. 

JobSeeker (formally NewStart and commonly referred to as the ‘Dole’) is government welfare paid to Australians who are unemployed. Whilst the headlines tend to refer exclusively to JobSeeker, students receiving Youth Allowance will be impacted by this change too - the payment increase also extends to those receiving Parenting Payments, Austudy, ABSTUDY Living Allowance, Special Benefit, Widow Allowance, Partner Allowance and Farm Household Allowance payments. 

During the Covid-19 crisis, the base amount of welfare payments were increased by as much as $550 per fortnight. This supplementary payment has been gradually lowered since September and is set to be cut off entirely by March 31st (making the 31st a double whammy of census date and decreased payments, RIP stressed students). The Jobseeker recipient is then left with $614/fortnight.  

So, it’s an increase, right? What are critics fussing about? 

Many say it still isn’t enough to live on. The Australian Institute argues that the minimal increase is ‘cruel’ and pushes ‘even more people into poverty, including thousands of children’. Other political parties like Labor call for a higher rate of payment, whilst the Greens are pushing for almost double what the Coalition proposes. Social services, lobbyist groups and advisory councils have backed calls for more dosh, arguing that the current payments are simply not enough to live a healthy and comfortable life with. 

The government, meanwhile, is focussed on the ‘balance’ and ‘sustainability’ of the economy. With the proposed change costing 9 billion dollars over 4 years, it’s certainly a significant cost. At the same time, there’s concern over what kind of message a welfare increase sends to Australians. 

Nationals Senator, Matt Canavan, expressed worry about the long term impact of the change on unemployment. On ABC News last week, he claimed that “dole bludgers” would see more welfare as an incentive to “sit on the couch and play the Xbox”. Canavan’s comments aren’t unusual amongst the Coalition, who have long approached welfare as a temporary ‘hand up’ rather than a ‘hand out’. 

So what does this all mean for students? With 1.24 million JobSeekers and 135,540 youth allowance recipients, the changes concern a sizable chunk of Australia’s most vulnerable. 

Students will pocket another $3.57 a day but it’s not likely to take them very far. In fact, it’s not even enough for a coffee at Courtyard. Certainly not enough for that Xbox that Canavan seems so concerned about. So will it be enough for students who are facing genuine homelessness, struggling to buy textbooks or unable to buy fresh fruit and veg? 

The changes are set for April 1st, but in the meantime, debates continue.