The Albanese government has been urged to lift JobSeeker and working age payments by an advisory committee just weeks before the Federal Budget.
Australians face a tense two weeks, with a perfect storm of fresh interest rate figures on May 5 followed by Treasurer Jim Chalmers' fifth federal budget on May 12.
The Economic Inclusion Advisory Committee (EIAC), which provides advice to the government on economic inclusion and tackling disadvantage, published a report on April 23 making 13 recommendations.
Among them, the key issue was addressing the adequacy of income support payments, including JobSeeker and the Remote Area Allowance (RAA).
'Increasing the rate of working age payments to improve economic inclusion – this is the Committee's top priority and repeats calls made in previous reports,' it read.
'While increases to the rates of Commonwealth Rent Assistance (CRA) in 2023 and 2024 reduced the extent and depth of housing stress, the situation has since deteriorated, and further increases are required.'
It also called on the government to immediately stop all Centrelink payment penalties, including suspensions, reductions and cancellations related to compulsory activities.
Chalmers thanked the EIAC for the report in a joint statement he issued with Social Services Minister Tanya Plibersek.
The Albanese government has been urged to lift JobSeeker and working age payments by an advisory committee, while stopping all Centrelink payment penalties (stock image)
Treasurer Jim Chalmers (pictured) has responded to the pleas
'This report helps shape our thinking on how to best support vulnerable Australians, which we have been doing through an extra $11.5billion investment in the social safety net in the 2023-24 and 2024-25 Budgets,' they said.
'We thank the EIAC for their important work and considered recommendations.
'The Albanese Labor Government is already acting on many of the issues outlined in the report by strengthening the social safety net, delivering cost of living relief, and investing in long-term prosperity.'
For example, on March 20, the federal government lifted JobSeeker payments to $808.70 for a single person, and up to $1,047.30 for a single principal carer.
The Commonwealth has also boosted the maximum rates of CRA by over 50 per cent since May 2022, with around $1,900 a year to the maximum payment.
Chalmers faces pressure to provide genuine relief to Australians in the May 12 Federal Budget, balancing spending restraint and the need to avoid stoking further inflation.
He has previously stated that it will be an 'ambitious' budget, prioritising intergenerational equity and tackling NDIS expenditure.
'There'll be tax reform, there'll be a productivity push, and there will be savings,' Chalmers told reporters in April.
'Cutting compliance costs is a big focus of the government and a big focus of the budget as well.
'It won't have every single idea that's been pitched to us over the last 12 months or so, but it will be ambitious in its breadth and in its depth as well.'