JobSeeker falls from same rate as pension to 68 per cent today, new report finds

Calls are growing to increase the JobSeeker rate after a new report found it has fallen well behind other social payments.

The Australian Council of Social Service (ACOSS) on Monday revealed a disparity between JobSeeker and the pension, which fell from the same rate in the 1970s to JobSeeker only accounting for 68 per cent of the pension today.

This has left the average 66-year-old who loses their job receiving almost $409 a week from JobSeeker and a 67-year-old who accesses the pension getting $600 a week.

ACOSS chief executive Cassandra Goldie said that is despite both people facing the same rent, grocery bill and energy costs.

“There is no reason one of them should be living on $191 a week less than the other,” she said.

“Woefully low-income support is causing physical and mental harm and trapping people in a cycle of poverty and deprivation.”

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The report found that pensions have risen in line with wage growth, while JobSeeker has not.

According to ACOSS, the pension has risen in real terms by more than $30 a week since 2009.

The pension is now 60 per cent of the minimum wage while JobSeeker is just 40 per cent.

“People who receive JobSeeker are skipping meals and forgoing essential medications just to keep a roof over their heads,” Goldie said.

At least 821,000 Australians aged between 22 and 66 receive JobSeeker payments, while about 2.7 million people aged 67 and above are on the age pension, according to the Australian Institute of Health and Welfare.

Both social payments are indexed twice a year and will next rise on September 20, with JobSeeker to increase by $8.10 a week and the pension to increase by $18.40 a week.

ACOSS is calling on the federal government to raise the JobSeeker rate to be in line with the pension.

“We are one of the wealthiest countries in the world, yet successive governments choose to keep 3.7 million people living in poverty,” Goldie said.

“We know how to fix this problem, we just need politicians to act.”

A Department of Social Services spokesperson said the JobSeeker and pension payments are tailored to different life stages and circumstances.

“The JobSeeker Payment is designed to offer short-term financial support to job seekers while they look for suitable work,” the spokesperson said.

“It acts as a safety net during periods of transition, helping people cover basic living costs as they work toward re-entering the workforce.”

The spokesperson acknowledged that Australians were doing it tough and said JobSeekers may be eligible for other support payments.

“The Australia Government recognises that many families and households, including those receiving income support payments like the JobSeeker Payment, are feeling the pinch of cost-of-living pressures,” the spokesperson said.