Labor flags potential dole hike

Jobless Australians could see themselves with a bit more money in their pockets under a future Labor government.

The federal opposition has flagged a potential increase to the dole if it wins the election.

On Wednesday it released a manifesto on tackling inequality, raising concerns about the adequacy of the Newstart allowance.

There was no denying income support for unemployed people was very low by international standards, the report said.

An independent review into the payment would be undertaken by a future Labor government to tackle the high rate of poverty amongst the jobless and encouraging work.

"Newstart is clearly not the safety net it is supposed to be. It is neither keeping people out of poverty nor providing them with the financial resources they need to look for and find work," the paper said.

Labor also wants to simplify the huge number of different welfare payments.

Job targets would be in place for long-term unemployed people and more support for Australians with a disability.

That would include an aim to create positions within the public service or in partnerships with the private sector for people with disabilities.

Shadow families and payments spokeswoman Jenny Macklin said the policy paper would address inequality, which is at its highest point in 75 years.

"Inequality should offend us all - it is contrary to that most Australian of ideals, the fair go," she told an Australian National University audience on Wednesday.