Australia needs more than a rate cut

Australian Council of Social Service (ACOSS) Media Release

ACOSS urges all parties and candidates to commit to delivering more direct support rather than rely on the Reserve Bank to address financial hardship following today’s rate cut.

“This rate cut is long overdue but will not be nearly enough to help people who are really struggling,” said ACOSS CEO Dr Cassandra Goldie.

“The next government will have to take more action to protect living standards. Millions of people on low and fixed incomes, many of whom do not have mortgages, need more than rate cuts. They need direct government support.

“Our surveys consistently show that people receiving income support skip meals and go without essential medical treatment because the payments are so low. The government must urgently raise the rate of income support to a level that allows people to afford the basics of life.”

JobSeeker is just $56 a day and Youth Allowance just $47 a day. ACOSS is calling for the payments to be lifted to at least the pension rate of $82 per day.

Dr Goldie said interest rates did not need to be raised as high as they were to combat inflation.

“We’ve been saying for a year now that interest rates were higher than needed to curb inflation. Both inflation and unemployment are now lower than many, including the RBA, expected,” she said.

“There are other ways to reduce price growth without deliberately harming jobs and incomes – such as limiting rent increases and further reducing out of pocket costs for essential government funded services like health, aged care and child care.”

“With the election around the corner, we urge the government and those who wish to form government to act to lift the incomes of people with the least, build more social housing and invest in essential services so they can meet need.”

 

 

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