The Times Australia
The Times World News

.
The Times Real Estate

.

how Jim Chalmers is shaping the budget

  • Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University
how Jim Chalmers is shaping the budget

What was Treasurer Jim Chalmers thinking?

Late last year he set up a committee he specifically asked[1] to tell him how bad JobSeeker was.

The exact words in its terms of reference[2] required it to advise him on the “adequacy, effectiveness and sustainability of income support payments”.

It is true that he was sort of forced to. Independent Senator David Pocock made the committee a condition[3] of supporting an unrelated industrial relations bill in the Senate. Its findings had to be published a fortnight before each budget.

Yet Chalmers chose to set a group whose findings would be hard to ignore. He put on it one of Australia’s pre-eminent experts in the adequacy of payments, Professor Peter Whiteford[4]; one of Australia’s pre-eminent experts in labour markets, Professor Jeff Borland[5]; and one of Australia’s pre-eminent experts in calculating disadvantage, Associate Professor Ben Phillips[6].

To give the “interim economic inclusion advisory committee” extra heft, he added the head of the trade union movement, the head of the Businesses Council, the head of the Council of Social Service and the head of the Treasury.

In short, Chalmers set up a committee he couldn’t ignore. So why is he now so keen to talk about everything but its number one recommendation?

Impossible to ignore

Sometimes committees like these end up making so many recommendations that a minister can pick and choose from them.

And this committee did make 37 recommendations, as Finance Minister Katy Gallagher noted this week saying she was “not going to be able to do everything[7]”.

But, unusually, this committee went out of its way to make sure one recommendation stood out above all others.

It reported that, given its short timeframe, it had:

decided to concentrate on the needs of the largest number of Australians experiencing poverty and disadvantage today, namely people on JobSeeker, Youth Allowance and related working-age payments.

It found every available indicator[8] showed the current rates of JobSeeker and related payments were seriously inadequate, whether measured against payments overseas, against the minimum wage, against pensions, or against poverty lines.

Report of the Interim Economic Inclusion Advisory Committee[9] Measured against other members[10] of the Organisation for Economic Co-operation and Development, Australia’s JobSeeker payment for a newly-unemployed single was the third worst. When the higher rates of rent assistance available overseas were taken into account, it became the absolute worst. Whereas a quarter of a century ago Australia’s unemployment payment was roughly in line with the pension, decades of lifting one in line with prices and the other in line with wages have left us with a base JobSeeker rate of $347[11] a week ($49.50 per day), compared to a base age pension of $485[12] a week ($69 per day). Too little to get medicines or work Job seekers told the committee that $347 per week is so low, they kept looking around their homes for things to sell. Some had to choose between medicines and electricity. Some could fill only some of their prescriptions. Others could barely afford the petrol to get to medical appointments. The committee’s findings echoed those of the OECD, which found 12 years ago[13] Australia’s unemployment payment had fallen so low compared to costs as to raise “issues about its effectiveness” in helping the unemployed find jobs. The committee’s number one recommendation – more important than any other – was that the government as a first priority, commit to a substantial increase in the base rates of the JobSeeker Payment and related working-age payments It didn’t ask for JobSeeker and associated payments to be lifted to the pension rate straight away, although it did suggest that the ultimate goal should be 90% of the pension. Ben Phillips has calculated that would cost $5.7 billion per year[14], which is less than 1% of total government spending. What the committee didn’t want was a tiny increase along the lines of the $25[15] a week ($3.60 per day) the Coalition delivered when the coronavirus payments ended in 2021, without a commitment to build to something substantial. So what is the government now doing in response? Chalmers and Gallagher appear to have decided it’s best to talk about something else. Changing the subject Seven News[16] has reported that, while it won’t touch the base rate of JobSeeker and associated payments, the Albanese government will increase the rate for Australians aged 55 and over who have been out of work for some time. That’s even less of a commitment than it seems. There are 920,640 Australians on JobSeeker[17] and Youth Allowance[18] (which is a lower rate of JobSeeker for young Australians and is also paid to apprentices and students). Only 236,280[19] of them are aged 55 and over. Many of those 236,280 are aged 60 and over, and already get[20] a boosted JobSeeker payment; an extra $26 per week ($3.70 per day) after they have been out of work for nine months. Read more: Top economists want JobSeeker boosted $100+ per week, tied to wages[21] If all Chalmers is planning is to extend the extra for the long-term unemployed aged 60 and over to the long-term unemployed aged 55 and over, it will cost little, and deny the vast bulk of those on $49.51 per day hope that things will improve. Chalmers appeared to verbal[22] his committee on Tuesday by saying it had found women over 55 are the most vulnerable group amongst unemployed Australians. While the committee did say that (and while 56% of the Australians on JobSeeker in that age group are women), it could not have been clearer in recommending that the base rate of JobSeeker and associated payments be lifted for all Australians. Chalmers says we ought to wait to see what is in the budget, which is fair enough. But if a commitment to do what his personally-selected expert committee has recommended isn’t in this budget, that committee is likely to recommend it again two weeks before the next budget, and again two weeks before the next. The treasurer has put himself on notice. Read more: Boosting JobSeeker is the most effective way to tackle poverty: what the treasurer's committee told him[23] References^ specifically asked (cdn.theconversation.com)^ terms of reference (cdn.theconversation.com)^ condition (www.afr.com)^ Peter Whiteford (theconversation.com)^ Jeff Borland (theconversation.com)^ Ben Phillips (theconversation.com)^ not going to be able to do everything (ministers.pmc.gov.au)^ every available indicator (cdn.theconversation.com)^ Report of the Interim Economic Inclusion Advisory Committee (cdn.theconversation.com)^ other members (www.oecd.org)^ $347 (www.servicesaustralia.gov.au)^ $485 (www.servicesaustralia.gov.au)^ 12 years ago (www.scribd.com)^ $5.7 billion per year (theconversation.com)^ $25 (www.9news.com.au)^ Seven News (twitter.com)^ JobSeeker (www.servicesaustralia.gov.au)^ Youth Allowance (www.servicesaustralia.gov.au)^ 236,280 (data.gov.au)^ already get (www.servicesaustralia.gov.au)^ Top economists want JobSeeker boosted $100+ per week, tied to wages (theconversation.com)^ verbal (ministers.treasury.gov.au)^ Boosting JobSeeker is the most effective way to tackle poverty: what the treasurer's committee told him (theconversation.com)

Read more https://theconversation.com/presented-with-a-jobseeker-finding-too-clear-to-ignore-he-changed-the-subject-how-jim-chalmers-is-shaping-the-budget-204754

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping