This payment has been like lighting a dark room full of promise and wonder, only to turn the light out because the committee has the power to do so. Please ask the committee to leave the light on for us all.
This Social Services and Other Legislation Amendment (Extension of Coronavirus Support) Bill 2020 (bill) further cuts the coronavirus supplement from $250 a fortnight to $150 a fortnight from 1 January 2021.
The Australian Greens reject the majority committee view that this bill will adequately support people as they re-engage with the workforce. The overwhelming evidence received by the committee clearly demonstrates this bill will cause harm by further cutting the rate of the coronavirus supplement and dropping people on income support payments further below the poverty line.
As explained by the Australian Council of Social Service:
This bill cuts income support payments by $50 a week at Christmas time. Around 2.5 million people will be affected by this cut, including parents of 1.1 million children. A total of 3.6 million people will need to make do with less this Christmas.
The committee heard evidence about the positive impact the original rate of the coronavirus supplement of $550 a fortnight had on people’s lives. The rate of $550 a fortnight allowed people on Jobseeker Payment, Youth Allowance and Parenting Payment to be able to afford nutritious food, three meals a day, children’s school activities, essential medications, housing costs, new clothing and shoes, and heating and cooling. Importantly, the coronavirus supplement also allowed people to avoid predatory payday lenders and even pay off some outstanding debts.
While the rate of $550 a fortnight lifted millions of people out of poverty, the first cut to the coronavirus supplement of $300 a fortnight dropped people back below the poverty line. This has had devastating impacts on Australians receiving income support payments.
Dr Sandy Ross, Executive Officer, Financial Counselling Victoria, noted that financial counsellors have seen an uptick in demand following the cut to the coronavirus supplement in September.
Ms Terese Edwards, Chief Executive Officer, National Council for Single Mothers and their Children, explained how the cut of $300 a fortnight meant homelessness, skipping meals, and no cooling in summer.
Ms Kristin O’Connell from the Australian Unemployed Workers’ Union discussed how the union has been ‘flooded with people who are in extreme distress as a result of the payment being slashed’.
The Australian Greens have strong concerns that this bill will only exacerbate the financial hardship and deprivation currently being experienced by Australians on income support payments.
Many submitters questioned the timing of this cut to the coronavirus supplement.
Ms Kasy Chambers, Executive Director, Anglicare Australia noted that January is the peak for emergency relief and financial counselling services and it is an expensive time of year for families preparing for the school year. Ms Chambers noted: ‘So, even down to the month and the day, it is not the right time’.
The Australian Greens have serious concerns that the timing of this cut to the coronavirus supplement will further contribute to financial stress and hardship being experienced by millions of unemployed and underemployed Australians.
COTA Australia raised concerns about the reintroduction of the liquid asset waiting period test and the impact this will have on older workers:
These people will be forced to draw through their assets, due to the liquid asset waiting period, and then they'll be driven further into poverty before reaching retirement.
The Australian Greens strongly reject the majority committee view that the reintroduction of the liquid assets waiting period and assets test is justified because these measures are reflective of the long-standing principle that people should rely on their own resources first. This blanket argument ignores the fact that Australia is in the middle of a recession and we need to make changes to ensure Australians don’t fall behind due to circumstances out of their control like age discrimination. Now is not the time to be forcing older Australians into further financial hardship and deprivation by making them wear down their savings.
The committee heard important evidence from Professor Jeff Borland that there is no evidence to support the argument that higher levels of Jobseeker Payment act as a disincentive for people to look for work:
I don't see any evidence that the COVID-19 supplement has been a substantial or really any type of major disincentive for people to move into work from unemployment. I'm not aware of systematic, Australia-wide evidence that the COVID-19 supplement has constituted a barrier to people moving back into work.
The Australian Greens call on the government to stop using anecdotal claims about higher income support payments acting as a disincentive for people to look for work as a justification for cutting the coronavirus supplement. The government must stop trying to demonise those looking for work and trying to survive on the Jobseeker payment.
The overwhelming evidence heard by the committee demonstrates the need for continued levels of support for unemployed and underemployed Australians that ensures people can live above the poverty line. No one should need to live in fear and anxiety about how they will afford to buy healthy food or keep a roof over their heads.
The Australian Greens urge the government to listen to the evidence heard throughout the inquiry and use this opportunity to increase the coronavirus supplement to $550 a fortnight.
Recommendations
Recommendation
That the Government immediately announce a permanent and ongoing increase to the Jobseeker Payment.
Recommendation
That the Government immediately re-instate the original rate of the coronavirus supplement of $550 a fortnight, as outlined in our Private Senators Bill Social Security Amendment (COVID-19 Supplement) Bill 2020 which is currently before the Senate.
Recommendation
That the Government re-instate the pause on the Liquid Assets Waiting Period test and assets test to ensure unemployed Australians aren’t forced to draw down on their savings before they can access support.