Tim Storer (SA, Independent) Share this | Hansard source

My question is to the Minister representing the Minister for Social Services, Senator Fierravanti-Wells. The Newstart allowance for a single person stands at a low $277.30 per week. I recognise that it was increased by $7 in early March. Newstart hasn't lifted in line with national living standards for a quarter of a century. Newstart is indexed to CPI rather than wages. Wages have a much greater impact on living standards than CPI and have grown faster than CPI over time. As a result, Newstart has shrunk to the level of average wages, median wages, minimum wage and age pension and is set to shrink further. The Business Council of Australia, in its submission to the 2012 Senate inquiry into Newstart, argued for increasing Newstart on adequacy and fairness grounds. KPMG, the Australian Council of Social Service and well-respected economists such as Chris Richardson have made similar calls. Will the government take the BCA's advice and increase Newstart to be reflective of the current need?