Morrison Government's Newstart cuts will hurt 40,000 Australian workers

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The Morrison Government’s planned cuts to Newstart, which passed the House last night, will hurt 40,000 Australian workers.
 
The Morrison Government plans to cut Newstart by doubling the Liquid Assets Wait Time from three months to six months.
 
Australian workers who are made redundant with $18,000 in liquid assets will be forced to wait six months before the can access income support.
 
This isn’t a lot of money when you need to stretch it out over six months.
 
It’s not just cash in hand. Liquid Assets can include:
 

  • some payments made or due to be made by a person's last employer – including redundancies yet to be made;

  • amounts deposited or lent to banks or other financial institutions – whether or not the amount can be withdrawn or repaid immediately;

  • assets given to a son or daughter in some circumstances;

  • loans to other people;

  • compensation payments.


These changes will disproportionately impact middle-aged and older Australian workers who have recently been made redundant.

Age discrimination is a huge issue – and it’s not easy to re-enter the workforce.

It will disproportionately impact on those in our regions, where unemployment is higher than the national average.

Australians aged 45 and older make up half of all Newstart recipients. And 25 per cent of people on Newstart are over 55.

For many, this will eat up the only financial buffer standing between them and absolute hardship and push people toward poverty and hardship.

If their car needs repair; if their fridge breaks down; if family gets sick – they will have absolutely nothing left for such emergencies.

At a time when Australians are already doing it tough; wages are stagnant; and jobs are less secure – this cut to our safety net is a low blow.

LINDA BURNEY

MEDIA RELEASE - TUESDAY, 3 DECEMBER 2019

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