Despite recent increases, JobSeeker still leaves people below the poverty line. Here’s why that affects us all

Over the past two years, there has been some progress in improving the JobSeeker payment. But payment levels remain below the poverty line.

That’s according to Australia’s Economic Inclusion Advisory Committee’s 2025 report, released this week a fortnight ahead of the federal budget on March 25. This committee advises the Federal Government on ways to enhance economic inclusion and reduce disadvantage.

The committee is chaired by former Labor minister Jenny Macklin. It comprises experts in social security and economics, as well as leaders from the community sector, advocacy organisations, unions, business, and philanthropy. I am one of its members.

This year’s report focuses on the adequacy of supports, including JobSeeker payments, Commonwealth Rent Assistance and Remote Area Allowance. It also looks at how systems could be reformed.

The report makes ten recommendations. Of these, the highest priority is for the government to substantially increase the base rates of JobSeeker and related working age payments.

Doing so could deliver big economic and social benefits. Research shows a possible return to society of $1.24 for every dollar invested in increasing the JobSeeker rate.

A wide range of voices

In forming its ten recommendations for 2025, the committee consulted with a wide range of people with lived experience of economic exclusion and the social security system.

This spanned groups across a wide variety of backgrounds and circumstances, including people experiencing homelessness or unemployment, those living with a chronic condition or disability, and women who have experienced domestic violence.

We also commissioned research on some important questions. These included the benefits of increasing income support payments, how much money it costs to support healthy living, how to address family and domestic violence, and other impacts and costs of poverty in Australia.

An investment in society

For this year’s report, the committee commissioned research from economics consulting firm Mandala to put a dollar figure on the possible social and economic returns from increasing the JobSeeker payment.

This research was the first of its type produced for Australia, and found society could earn a return of $1.24 for every dollar invested in increasing the JobSeeker rate.

This is because increasing the adequacy of JobSeeker payment would boost our national economic output through improved mental health, higher productivity and longer working lives.

It would also lead to decreased use of the healthcare system, and reduce levels of contact with the criminal justice system.

The cost of living

Further research by the University of New South Wales assessed levels of income support payments against “budget standards”.

These budget standards reflect the amount of money a family needs to purchase the goods and services required to enjoy an acceptable and healthy standard of living.

Researchers found single private renters in capital cities would need an increase of nearly 45% in total payments to cover their costs.

Single public renters in Fitzroy Crossing, a very remote town in Western Australia, would need an increase in support of nearly 67% to cover the extra costs of food and transport.

Other impacts of poverty

Other research examined the impact and costs of poverty to Australia. Some disturbing facts were uncovered.

Department of Social Services data show that despite two increases in Commonwealth Rent Assistance (CRA) since 2023, more than 200,000 of the 1.35 million recipients of CRA in December 2024 were paying more than half their income in rent.

People receiving JobSeeker are 14 times more likely to lack a substantial meal at least once a day.

And analysis by the Australian Institute of Health and Welfare shows that people receiving JobSeeker are significantly more likely to die by suicide than the general Australian population.

International comparison

Despite recent increases, Australia remains near the bottom of OECD advanced economic nations when it comes to the adequacy of out-of-work payments for the short-term unemployed.

We rank better for the long-term unemployed. But as a percentage of median household disposable income (adjusted for household size), our benefits have fallen by more than any other of 24 high-income OECD countries.

The JobSeeker payment, and related income supports, have mainly been indexed in line with the consumer price index (CPI).

This has caused their relative base rates to fall significantly below existing benchmarks like the Age Pension, creating severe hardship for our neediest citizens.

Increasing JobSeeker and other payments would improve the lives of Australians in poverty. There would also be big benefits for health and productivity, with flow-on effects for our national economy.

Addressing family and domestic violence

Family and domestic violence is a major health, economic, and welfare issue in Australia.

The committee commissioned research by Social Ventures Australia and Professor Roslyn Russell on the effect government payments have on a victim-survivor’s decision to leave a violent relationship.

The research found 45% of wage earners permanently leave a violent partner the first time they try to leave. But among those receiving income support, this figure falls to 26%.

Many victim-survivors do not access government emergency financial support payments when leaving a violent relationship.

The research shows how elements of the system’s current design and delivery create barriers for victim-survivors to access and maintain an income at a time of crisis.

The committee found making it easier for survivors of family and domestic violence to interact with the social security payments system should be a priority.