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?
Raise the rate
The Newstart Allowance received by Australia’s jobless (if they are lucky enough to get it) stands at $273 a week. The last time it was raised, relative to the Consumer Price Index, was in 1994. Last year, the Melbourne Institute of Applied Economic and Social Research calculated the poverty line for a single adult was at around $510 a week (including housing costs). That corresponds to a present figure of about $521. This means Newstart is now $248 a week below that miserably low poverty line.