The Federal Government must urgently lift income support payments as cost of living pressures are expected to take centre stage in the next budget and 2025 federal election.
Today's routine indexation of income support payments is grossly inadequate, leaving millions unable to afford basic essentials. Youth Allowance for a single person living away from home is only going up by $1.70 a day. This lifts Youth Allowance and Austudy to a mere $47 a day, which is 36% of the minimum wage.
Some income support payments including Youth Allowance and Austudy are adjusted for inflation on January 1 each year.
"Indexation alone is not enough. An extra $1.70 a day wouldn't even cover a loaf of bread. People on income support are being left further behind while costs of rent, food and essentials are spiralling out of control and driving people on income support payments deeper into poverty," said ACOSS CEO Dr Cassandra Goldie.
"Parents are skipping meals to ensure their children can eat, people are forgoing essential medications, and many are losing hope. In a wealthy country like ours, this is a national shame.
"These indexation adjustments barely scratch the surface and the current rates are completely out of step with basic living costs."
ACOSS is also calling for Youth Allowance and Austudy to be indexed every six months, like JobSeeker and pensions.
"Young people are forced to wait 12 months before seeing an indexation increase in their payments - by the time it comes they may no longer be eligible for student payments and miss out on income that should have helped keep their heads above water during their studies," Dr Goldie said.
"A system that leaves students living in poverty is setting them up to fail before they even start."
Dr Goldie said the rate of income support must be lifted to at least $82 a day, in line with the Age Pension.
"The way to end poverty is simple: raise the rate. Anything less is a choice to keep people hungry, sick and struggling," she said.
