Your task is simple. Here is $115.50. It must last one week. You have no savings, no assets, but thankfully you’ve already paid your rent. That’s about $16 a day to cover food, bills, transport, entertainment and hygiene products.
We hope you like never going out, watching television and that none of your loved ones ever require a birthday present. Hopefully you’re not someone who requires much medication or needs to go the Doctor. We do hope you like basic carbohydrates or can cope with the embarrassment of having to ask a charity for a food parcel.
Welcome to the world of Australia’s depressed, stigmatised and disempowered Newstart recipients.
Forty-nine year old “Michael”, one of our clients at Social Security Rights Victoria, lost his family business in 2003 because of the growth of overseas manufacturing.
“You’re always in debt on Newstart, you’re always behind, you never know if they are going to cut you off - I wouldn’t wish it anyone. You eat very basic. Sometimes you just don’t eat at all or you have to ask friends for food. There are certainly no more restaurants, cinemas or going out with friends for drinks. Being on the dole is very embarrassing and isolating.” he says.
Figures from the Australian Bureau of Statistics indicate close to 50 per cent of Newstart recipients buy only second hand clothes, while two in five (40 per cent) couldn’t pay an electricity, gas or telephone bill on time. One in eight (12.5 per cent) failed to pay car registration or insurance on time. Thirty per cent have to borrow money off families or friends just to get by.
“Sometimes I just eat rice or toast all day because I can’t afford anything else” says Brett, a 35 year old Newstart Recipient who lost his job as a labourer after hurting his back. “I eat like a jockey and to be honest it’s hard not to get down on yourself. I am supposed to be a provider, a bloke. When I don’t have enough money for food, it makes me feel like a real no-hoper”.
The single unemployment benefit in Australia is just $474.90 per fortnight. The single pension is a much higher $729.30 per fortnight. Unemployment benefits in Australia have not increased in real terms since 1994.
For single people on the average wage losing their job, Australian benefits are about the lowest in the OECD. The OECD has said our Newstart rate is “so low it raises issues about it effectiveness in providing financial resources needed to assist Australians find work or study”.
Far from being an incentive getting a job, Australia’s unemployment benefit is so low it entrenches unemployment. Newstart recipients often struggle to pay for transport, clothes, dentistry or a mobile phone - making it all the more unlikely they will ever get a job.
They usually do not have the resources to re-skill or undertake study. Let alone the impact living in poverty has on their self-esteem Is it any wonder 210,000 of the nation’s 540,000-odd Newstart recipients have been unemployed for more than two years?
“I had to get rid of my car because I couldn’t afford to run it,” Michael says. “This meant there were a whole lot of jobs I was no longer in the running for.”
It stands to reason countries with higher levels of poverty and inequality have higher levels of mental illness, crime, obesity and violence.
The Federal Government has so far ignored the 2009 Henry Review of the tax and transfer system which recommended that a new benchmark be established for allowance payments. Under current rates, this would require an increase to the Newstart Allowance of $50 per week.
A surprising number of conservative commentators and business representatives are also calling for an increase to the dole. Liberal Party Stalwart and former Business Council of Australia chief Hugh Morgan says living on just $245 a week must be ‘‘a humbling if not traumatic experience’‘.
Conservative economist Judith Sloan, Business Council of Australia head Jennifer Westacott and outgoing Australian Industry Group head and new Reserve Bank board member Heather Ridout also have all argued for an increase to the rate of Newstart.
The Federal Government has responded with a big “no way” to increasing the dole. “Australia’s social security system needs to provide a strong safety net for people who need financial assistance while also acting as an incentive for people to take up paid work,” Federal Employment Minister Bill Shorten told The Australian.
Mr Shorten, the simple fact is there aren’t enough jobs to go around. The Bureau of Statistics found 194,000 vacancies and 575,000 Australians seeking work in November 2011. This means there are now three unemployed for each vacant job.
Until our Government can create 100% employment and vastly improve its woefully inadequate job services network it has a duty to its citizens to ensure they have the resources to re-enter the workforce.
Australians deserve more from a Labor Government than predictable and cynical attempts to capture to middle Australia with half-hearted cries of being “tough of welfare”. Australians deserve better than $16.50 per day.
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