Earn
The business case for raising Newstart
Raising Newstart would have the benefit of reducing the poverty gap for unemployed people and giving them better resource to find work while also having a positive flow-on effect for the national economy, according to new research.
The business case for raising Newstart
Raising Newstart would have the benefit of reducing the poverty gap for unemployed people and giving them better resource to find work while also having a positive flow-on effect for the national economy, according to new research.
The University of Adelaide has outlined that the sector of underemployed and unemployed Aussies are causing significant drag on the economy, with a lack of rewarding work resulting in a reduction in household consumption and consumer confidence.
An increase in the Newstart Allowance (NSA), deployed alongside a variety of other schemes, including sponsored work and training, would see more people able to access lucrative and rewarding work, which would ultimately benefit the economy, it found.
The research considered that in the long term, this would not only benefit the economy but consequently reduce the reliance on services such as the NSA.
The university indicated that the NSA is no longer substantial enough for jobseekers to subsist on due to the Howard government’s decision to benchmark NSA to inflation rather than wages.
The ratio of NSA to federal minimum wage (FMW) is now only 37.5 per cent.
“If the relativities between Newstart and average weekly earnings had stayed the same, the Newstart allowance would now be $347 and $356 per week for males and females, respectively, compared with the current rate of $278 a week,” associate professor of economics at the University of Adelaide Michael O’Neil outlined.
Underemployment and unemployment also mean a loss of human capital, a decrease in tax revenue, and an intensification of social problems.
“An increase of between $80 and $120 per week would be justified on the basis of equity for the recipients and in reducing the poverty gap many Newstart recipients face, while it would also help the unemployed to be better resourced for finding paid employment,” Professor O’Neil continued.
About the author
About the author
Salary
Treasurer announces stimulus package boost to hire, innovate and grow
The Treasurer has used his budget speech to focus on getting Australians back into the labour market as he looks to recover from the COVID-19 recession. ...Read more
Salary
Australia’s employment reaches new milestone
Australia has a new record number of people who are currently employed, new research figures have revealed. ...Read more
Salary
1 in 4 Aussies is now looking to change their job
With the economy beginning its recovery from the COVID-19 downturn, Australian workers are now actively seeking new employment, a survey has revealed. ...Read more
Salary
Aussie workers exceed expectations – but can it last?
Australian workers have adapted to changing working conditions caused by the COVID-19 pandemic, with the majority of bosses saying workers exceeded expectations. ...Read more
Salary
Do business better: The next normal needs older workers
The fallout from the global pandemic is reshaping the way in which people of all ages work. More people are working from home than ever before and many companies have had to adapt their business model...Read more
Salary
Budget must focus on imbalances, says ACTU
Unions are warning the Morrison government ahead of the budget, noting that Australia will judge them based on several key factors, including how they protect the working people and build greater re...Read more
Salary
Is it time to adopt a 4-day working week?
With Spain becoming one of the first countries to trial a four-day work week, calls have increased for Australia to trial similar model, which would see full-timers week reduced to 32 hours at the sa...Read more
Salary
How to survive and thrive in the gig economy
What do Uber drivers, Upworkers and Taskrabbiters have in common? They’re part of what’s often referred to as the “gig economy”, comprising millions of Aussie workers. ...Read more
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Salary
Treasurer announces stimulus package boost to hire, innovate and grow
The Treasurer has used his budget speech to focus on getting Australians back into the labour market as he looks to recover from the COVID-19 recession. ...Read more
Salary
Australia’s employment reaches new milestone
Australia has a new record number of people who are currently employed, new research figures have revealed. ...Read more
Salary
1 in 4 Aussies is now looking to change their job
With the economy beginning its recovery from the COVID-19 downturn, Australian workers are now actively seeking new employment, a survey has revealed. ...Read more
Salary
Aussie workers exceed expectations – but can it last?
Australian workers have adapted to changing working conditions caused by the COVID-19 pandemic, with the majority of bosses saying workers exceeded expectations. ...Read more
Salary
Do business better: The next normal needs older workers
The fallout from the global pandemic is reshaping the way in which people of all ages work. More people are working from home than ever before and many companies have had to adapt their business model...Read more
Salary
Budget must focus on imbalances, says ACTU
Unions are warning the Morrison government ahead of the budget, noting that Australia will judge them based on several key factors, including how they protect the working people and build greater re...Read more
Salary
Is it time to adopt a 4-day working week?
With Spain becoming one of the first countries to trial a four-day work week, calls have increased for Australia to trial similar model, which would see full-timers week reduced to 32 hours at the sa...Read more
Salary
How to survive and thrive in the gig economy
What do Uber drivers, Upworkers and Taskrabbiters have in common? They’re part of what’s often referred to as the “gig economy”, comprising millions of Aussie workers. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
