& # 39; One of the worst & # 39 ;: as Newstart confronts unemployment payments in the rest of the world | News in Australia


"For many unemployed, Australia not only does not have one of the best safety nets in the world, but it is also one of the worst."

This is the result of a Newstart analysis by prof. Peter Whiteford of the Australian University – and despite Scott Morrison's claim in May, the Australian safety net is a worldwide success.

Now there seems to be more momentum for an increase in Newstart, the unemployment allowance of $ 277.85 a week in Australia, than it has been for quite some time.

Guardian Australia has already evaluated some of the statements about Newstart previously, such as the wise suggestion that 99% of Newstart recipients get other payments.

But there is still more to say. So consider this, facts from Newstart, part two.

How does Newstart compare to the rest of the world?

The analysis of Whiteford, which first appeared in a piece of Inside Story, used data from the OECD to compare Australia's unemployment benefits against other nations.

Most of the other OECD countries have an insurance system in which people are compensated as a percentage of the last salary, while the payment of Australia is a fixed rate.

Whiteford took each country's "replacement rate" and, using an Australian who had lost a salary that was two-thirds of the average salary, found that Newstart was the second lowest payment in the OECD.

When he included assistance for rent, which gets about 40% of the people on Newstart, compared to residential subsidies from other nations, Newstart is "the lowest payment in the OECD".

Luke Henriques-Gomes

An OECD comparison of @WhitefordPeter pic.twitter.com/vyrIDo4qOT

22 July 2019

A spokeswoman for the department noted that other OECD nations have measured eligibility "based on income, contributions or taxes paid during a person's working life".

"In many countries overseas the eligibility and payment rates are determined by how much an individual contributed to an agreement based on insurance while working," the spokeswoman said. "In a number of cases these payments are also for a limited time.

"Australia's payments continue until an unemployed person finds a different job from a number of OECD countries, where the assistance a person receives can reduce or stop even if he remains unemployed" .

Even taking someone who had been on Newstart for five years, Whiteford found that Australia was still "below the OECD average" and behind countries like New Zealand, France, Germany and the United Kingdom.

How long do people stay on Newstart?

If you followed the debate around Newstart, perhaps you are wondering how two thirds of people can move from Newstart in less than 12 months, as the government says, while 64% are engaged for more than a year, like welfare groups stress.

The difference is in two tables of data prepared every six months by the Department of Social Services. Or, as Whiteford says, the difference between "stock and flow".

What the government mentions takes all the people who got the Newstart payment between January-December 2017. Then it counts how many have dropped the payment within 12 months. Of the 376,031 "voices", there were 226,530 "exits", or 63%.

The other data table takes all Newstart recipients on government books at a specific time, such as December last year, and measures the duration of the payment.

Basically, this measure involves people who have been on payment for much longer, even up to five or ten years. That table is reproduced below.

how long there are people on Newstart

Whiteford tells Guardian Australia that, on balance, the second table offers a better picture of how long there is on Newstart.

The government speaks of "the 400,000 people entering and leaving the system," he says.

"C & # 39; s a lot of short-term movement, but then there is also a good number of people who are there for a long time."

What if Newstart was indexed as a salary, like a pension?

In 1997, the Howard government effectively froze Newstart, tying it to inflation while the pension is anchored in wages. (Howard said it's time to increase Newstart.)

This led to six-month increases, such as the $ 2.35 per week extra delivered to Newstart recipients like Kylie Ruxton, who labeled it "laughable".

The Prof Assoc Phillips of the ANU has traced as Newstart is late with the pension and the average weekly earnings of Guardian Australia. He says that Newstart should be anchored to wages.

newstart compared to retirement
new start against wages

If Newstart had been linked to salaries, recipients will currently receive $ 351.91 per week, which is in line with the $ 75 per week increase supported by the Australian Social Services Council. modeled by Deloitteand proposed by the Greens.

The Union of Australian Unemployed Workers Calls for a $ 170 Increase per Week, which would bring Newstart to Henderson's line of poverty.

If the CPI measures the cost of living, what's the problem?

"The CPI applies to a fixed basket of goods and services and adjusts prices, often quite significantly, for quality change," says Phillips. "These adjustments do not reflect the true cost of living for Newstart beneficiaries who have turned them into a standard of living in the 90's."

Phillips points out that now mobile phones and Internet access are an essential part of life and necessary for the unemployed to meet their job search requirements.

"Over the years this was not the case," he says.

So Newstart has just increased. And the salary of your politician?

Some have suggested that social security payments should be established independently, just like the remuneration of our politicians, which is decided by the remuneration court.

So how do the two compare when politicians increased Newstart in real terms in 1994?

So, the Newstart rate was $ 143.20, which is $ 261.16 in today's money. This is equivalent to $ 7,446.40 per year or $ 13,580.32 in real terms. Now $ 14.448,20.

While increases for politicians have mostly been in line with wages (starting from a much higher base), in 2012, parliamentarians and senators received an annual salary of $ 50,000.

Newstart was 10.8% of a politician's salary in 1994, and is now 6.85%.

Between 1994 and today, as the Newstart increases were anchored in inflation, the basic salary of a federal politician increased by $ 85.776,37 in real terms.

newstart vs pollies

. (tagsToTranslate) Welfare (t) Australian policy (t) Australian economy (t) News Australia


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