This month, government payments will rise, with some increases being the largest in 30 years. It will be an increase of around $2-3 per day.

From 20 September, several government payments will increase by 2.2 per cent as a result of indexation. 

While welcoming the increase, advocacy groups are calling for more support through the rising cost of living, with 73 per cent of recipients surveyed saying they’ve eaten less or skipped meals to survive on the payment. 

“Australia’s income support payments are among the lowest in wealthy nations and do not cover the essentials of life such as rent, energy and food, causing serious harm to those who rely on them,” said Australian Council Of Social Service (ACOSS) Deputy CEO Edwina MacDonald. 

A recent study of people living on JobSeeker, Youth Allowance and Parenting Payment in July and August found that 50 per cent of respondents thought the increase would help them ‘not at all’.

41 per cent of respondents said it would help ‘a little’.

“People are regularly skipping meals, going without heating and cooling, forgoing essential medication and medical care, and experiencing social isolation,” Ms MacDonald said. 

“While every dollar counts, the $4-a-day increase this month will not go far at all when food, rent and clothes are getting more expensive.”

Mental and physical health and access to medicine have also suffered under the financial constraints of $40-$50 per day. 

National Seniors Australia chief advocate Ian Henschke has similar concerns for aged pension-recipients, which will rise by $32.70 per fortnight.

“It’s a good start but more needs to be done to help renters,” Mr Henschke said. 

“39 per cent of older renters told us they were experiencing severe cost-of-living impacts compared to only 11 per cent of older homeowners,” he recalled from their own research on the topic. 

SOURCE: ACOSS

Despite calls for more, the increase is the largest boost in more than 30 years for allowances and 12 years for pensions. 

“Our guiding principles as a Government are ensuring no one is left behind and no one is held back and this indexation increase will help those on Government payments keep up with the cost of living,” Minister for Social Services Amanda Rishworth said.

“More broadly, it is important to remember these income support changes work alongside other cost of living relief in the Budget including help with power bills, record investment in Medicare bulk-billing and cheaper medicines.”

The government has been urged to further lift income support payments, double rent assistance, establish a disability and illness and single parent supplement and change income test rules for pensioners wanting to work more.