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Welfare gains made amid cost-of-living crisis

A helping hand: The Red Shield Appeal has been run by the Salvation Army to help those in need for many years. Now more than ever people are feeling the pinch. Photo by contributed

The federal budget was released on Tuesday, May 9, with measures to curb the effects of the cost-of-living crisis high on welfare organisations’ agendas.

While there was an air of austerity with measured spending in an effort to curb inflation, a $14.6 billion cost-of-living package was announced in an effort to provide some relief to struggling Aussies.

Captain Lauren Kirkham from Salvation Army Corps Seymour said common things people across Mitchell Shire were struggling to pay for or were forgoing included petrol for transport, electricity for heating and medication.

“The stories that we commonly hear are people that just don’t want to use their electricity or gas for fear of it being too expensive, particularly older people who own their home but need the heating to stay well,” she said.

Direct fiscal injections reminiscent of the Rudd government during the Global Financial Crisis or Morrison during the COVID-19 pandemic were not replicated, however some gains were made in increasing welfare payments.

Payments like JobSeeker, Youth Allowance and Austudy have been increased by a minimum of $40 a fortnight.

The increase to youth allowance is the largest since 1998, however it still leaves young Australians living on less than $50 a day.

JobSeeker payments for those over 60 years old has always been a slightly higher rate, reflective of the increased challenges in gaining employment at this age.

The age threshold for receiving this increased amount has been lowered to 55 years old, and the actual amount increased slightly.

Captain Kirkham said while the increase in payments was welcome, she was not confident it would be enough to give those on welfare much reprieve given low income earners who were working full time were also struggling to make ends meet.

“It is very difficult for those in the low-income space,” she said.

“I think we are still going to see people coming through our doors even with the increase in payments.”

She believes more must be done to address the systemic issues that contribute to financial instability and homelessness within Mitchell Shire.

“In our community, homelessness and domestic violence are huge issues. I know there are some measures in the budget … so that was really positive … but I don’t know if they’ll be enough,” she said.

“It’s really important to be able to look at things from a broader perspective rather than Band-aid solutions.

“It’s really important that we see that investment in those longer term solutions rather than Band-aid solutions.”

Despite the long way to go in creating a more certain future for Australia’s most vulnerable, Captain Kirkham said it was not all doom and gloom.

“I think it will ease some of the stress, not all of it and not immediately, but maybe over time,” she said.

“I was encouraged that they are thinking about housing, but at this stage we still need more investment in that area.

“It is very difficult. I wouldn’t want to be in the place of creating a budget nationally. It would be incredibly difficult to create a budget where people of all socioeconomic levels can benefit.”

The Salvation Army Red Shield Appeal is now under way and will run until June. The Red Shield door knock takes place on the last weekend in May.

A focus of this year’s appeal is making food more accessible to those who need it.