Centrelink payments and the Economic Inclusion Advisory Committee Report put budget pressure on government
The economic inclusion advisory committee report has sharpened the debate over Centrelink payments as the Albanese government weighs its next budget move. Released on Friday, the report says boosting income support should be a top priority to improve economic inclusion in Australia. The committee also wants immediate action on penalties linked to compulsory activities.
Economic Inclusion Advisory Committee Report pushes for faster action
The economic inclusion advisory committee report calls for the government to increase the rate of working age payments for vulnerable Australians, including JobSeeker, Youth Allowance and the Remote Area Allowance. It says previous increases to rent assistance in 2023 and 2024 helped reduce housing stress, but the rental market has since deteriorated and those increases are no longer enough. The report adds that further increases are required.
The committee also says the government should immediately stop all Centrelink payment penalties, including suspensions, reductions and cancellations related to compulsory activities. The message is blunt: the committee sees income support as too low to meet basic needs, especially as housing pressure remains severe.
What officials and advocates are saying
The federal government said the report “helps shape our thinking on how to best support vulnerable Australians. ” Treasurer Jim Chalmers and Social Services Minister Tanya Plibersek pointed to earlier increases to key payments under their government in a joint statement. Since May 2022, the typical rate of JobSeeker Payment for a single person without dependent children has increased by $166 a fortnight, or $4, 300 a year, while Commonwealth Rent Assistance has increased by 50 per cent over that period, providing an extra $1, 900 a year at the maximum rate.
Australian Council of Social Service chief executive Dr Cassandra Goldie welcomed the report and urged the government to act now. She said that with unemployment predicted by some to rise to between 5 and 6. 5 per cent by the end of the year, Australia needs a stronger safety net and employment services that support people into paid work. Her warning was clear: cost of living support must be targeted to people already living in poverty, facing rising costs of fuel, food and rent.
Economic Inclusion Advisory Committee Report in context
The Economic Inclusion Advisory Committee was established in November 2022 to provide independent advice to the Australian government before every federal Budget on economic inclusion and tackling disadvantage. The committee’s fourth version was released on Friday, with the next federal budget due next month.
The report lands at a moment when social service groups are pressing harder for change, and the government is being pushed to balance budget discipline with rising hardship. The economic inclusion advisory committee report puts that choice directly back on the table, and the coming budget will show whether Canberra treats the warning as a signal for action.
