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
100k+ jobs boost isn’t all good news
More than 100,000 jobs have unexpectedly been added to the economy, according to the latest figures from the Australian Bureau of Statistics. ...Read more
Salary
Rules for JobKeeper 2.0 confirmed
The Australian government has announced the new rules governing the extension of the JobKeeper payment starting from 28 September 2020. ...Read more
Salary
Wage theft could put Qld bosses behind bars for 10 years
Queensland bosses who skip out on super payments or underpay their employees’ wages can now end up in jail, with wage theft now criminalised in the state. ...Read more
Salary
Millions in compensation payments delayed, ALA finds
Centrelink delays are preventing vulnerable families from accessing millions of dollars locked in insurers’ trust accounts, a national legal body has found. ...Read more
Salary
1.3m employees to lose JobKeeper at month’s end
According to the Treasury’s estimates, over 2.2 million Australians will remain on the JobKeeper program beyond 27 September, down from the current 3.5 million. ...Read more
Salary
Not so equal pay day
Despite today being equal pay day, new research has shown that women are still making 14 per cent less than their male counterparts, leading to longer-term financial instability. ...Read more
Salary
It’s now twice as hard to land a job in 2020
For every job opening on LinkedIn, there are now 40 people vying for the role, a 50 per cent increase in applicants since January 2020. ...Read more
Salary
Pandemic puts 4-year hurdle in the way of pay equality
The time frame for gender economic equality has been blown out to 36 years, thanks to the coronavirus pandemic, according to the latest Financy Women’s Index. ...Read more
Salary
100k+ jobs boost isn’t all good news
More than 100,000 jobs have unexpectedly been added to the economy, according to the latest figures from the Australian Bureau of Statistics. ...Read more
Salary
Rules for JobKeeper 2.0 confirmed
The Australian government has announced the new rules governing the extension of the JobKeeper payment starting from 28 September 2020. ...Read more
Salary
Wage theft could put Qld bosses behind bars for 10 years
Queensland bosses who skip out on super payments or underpay their employees’ wages can now end up in jail, with wage theft now criminalised in the state. ...Read more
Salary
Millions in compensation payments delayed, ALA finds
Centrelink delays are preventing vulnerable families from accessing millions of dollars locked in insurers’ trust accounts, a national legal body has found. ...Read more
Salary
1.3m employees to lose JobKeeper at month’s end
According to the Treasury’s estimates, over 2.2 million Australians will remain on the JobKeeper program beyond 27 September, down from the current 3.5 million. ...Read more
Salary
Not so equal pay day
Despite today being equal pay day, new research has shown that women are still making 14 per cent less than their male counterparts, leading to longer-term financial instability. ...Read more
Salary
It’s now twice as hard to land a job in 2020
For every job opening on LinkedIn, there are now 40 people vying for the role, a 50 per cent increase in applicants since January 2020. ...Read more
Salary
Pandemic puts 4-year hurdle in the way of pay equality
The time frame for gender economic equality has been blown out to 36 years, thanks to the coronavirus pandemic, according to the latest Financy Women’s Index. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
