Newstart

More than 700,000 Australians are struggling to survive on $40 dollars a day while $200 billion is being set aside over the next 10 years for Australia’s military, largely to support US wars, according to the Independent and Peaceful Australia Network (IPAN).

How much bigger has Australia’s economy become since 1994? The answer, per head of population, seems to be: close to 50%. That’s not in current dollars, but adjusted for inflation. So can “Australia” (read: the big end of town) afford to raise the rate of Newstart payments — currently at a base rate of $273 a week for a single person — for the unemployed?

Here’s a novel idea: Instead of politicians voting themselves another pay rise, how about we give them a pay cut? A real pay cut. We ask them to do what a couple of million Australians are expected to do, week in and week out.

Currently more than 800,000 people are without paid work and are struggling to meet basic needs such as housing and food. There are countless stories of those living on welfare having to choose between paying a bill or eating a meal. Anyone who has been unemployed knows it costs money to seek employment, from printing your resumes to the cost of travel to interviews, appropriate clothing or a haircut. It is nearly impossible to look for paid work if you are homeless and hungry.

Recently Facebook reminded me of a “memory” of an article I posted three years ago. I had said that I was doing the happy dance because we were making progress and were finally being heard.

Whether it is welfare or wages, the income of youth and students seems to be under attack from the government and big business sectors. From the beginning of this year, commencing students will no longer receive the start-up scholarship of $1025, paid in two instalments over the year. New students now have the option of applying for a start-up loan of the same amount, which, similarly to the HECS debt, will be repaid to the Australian Tax Office once their income reaches a certain level.

Young job seekers today are facing the toughest job market seen in Australia for more than 20 years. According to Australian Bureau of Statistics figures, in September last year youth unemployment was 12.93%, after peaking at 14.43% in November 2014. However, there are youth unemployment hotspots in the Northern Territory, Victorian suburbs, Adelaide, Cairns and North-West Tasmania with much higher rates.

This is how Tony Abbott explained the new work-for-the-dole measures in the latest federal budget to the Queensland Chamber of Commerce: “That person can do up to four weeks of work experience with your business, with a private sector business, without losing unemployment benefits so it gives you a chance to have a kind of try-before-you-buy look at unemployed people.”

The Anti-Poverty Network South Australia released this statement on May 11. *** This year marks the 21st anniversary of the last time Newstart Allowance was raised in real terms. Since the 1994 federal budget, when Newstart was raised by a mere $2.95, the level of the payment has stagnated, falling increasingly behind the rest of community, and creating widespread poverty for unemployed people.