Today as the government attempts to use police powers to target those on welfare payments, new data shows just how horrific is life for those on Jobseeker.
The latest Rental Affordability Index released today by SGS Economics and Planning highlights the impossibly for many on Jobseeker to survive.
While the figures in the report suggested some good news for overall housing affordability – especially in capital cities where affordability had stabilised after a few years of getting worse – for those on Jobseeker the situation remains dire.
The report acknowledges the common view that rental stress occurs if those on low-incomes need to spend more than 30% of their weekly income on rent. By that measure every place in the country involves such stress.
For those living in capital cities however the situation is well past the point of stress and into critical desperation. In Melbourne, Brisbane, Sydney and Perth, those on Jobseeker are having to spend ALL of their income on rent.
Even in the most affordable areas of country SA those on Jobseeker are having to spend half of their income on rent – well beyond the “30%” point of rental stress.
This is what happens when you have a combination of housing policy that is driven by tax breaks for property speculators, a reduction in public housing and a 30-year fall in the real value of Jobseeker:
The solution is not to further demonise those on welfare by using police powers that remove the presumption of innocence, but to boost Jobseeker to a liveable amount, and increase public housing so that we don’t have those on Jobseeker and their children living in abject poverty.
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By ending or at least significantly reduce subsidies to fossil fuel companies, would give the government immediate scope to double JobSeeker to a basic level.
Reforming negative gearing and capital gains discounts could raise JobSeeker further, and improve the economy, as clients could afford to spend on discretionary products.