Income support needs real increase not just indexation

18 September 2026

Routine indexation to income support payments is not enough and the Federal Government must deliver a substantial real increase to working-age payments, ACOSS said today.

From 20 September, JobSeeker Payment, Parenting Payment, pensions and Commonwealth Rent Assistance will rise in line with the twice-yearly indexation cycle.

“People receiving JobSeeker are going without meals and struggling to keep a roof over their heads,” said ACOSS CEO Cassandra Goldie.

“While every extra dollar counts, routine indexation does not lift people out of poverty and deprivation.

“We know it’s tough-going trying to survive on the minimum wage, yet people on income support are expected to survive on an income of less than half that.

“The government must deliver a substantial real increase to JobSeeker, Youth Allowance, Parenting Payment and related supports so that people don’t have to go without the essentials.”

A recent ACOSS survey of 1,560 people receiving working-age income support found 95% are struggling to cover grocery costs, with three in four (74%) cutting back on food, skipping meals, or eating smaller portions.

AIHW data released last week showed people receiving income support are five times more likely to die by suicide than the general population.

“When people can’t afford the essentials of life this has a major impact on physical and mental health,” said Dr Goldie. “We should not have this level of deprivation in one of the wealthiest countries in the world.”

Michael Oliver, 23, from Perth, is a full-time TAFE student who receives Youth Allowance and works in the kitchen at a bowling centre to supplement his income.

“I have to work in addition to studying in order to stay afloat. I went on the support payments to afford to go to TAFE, but still have to work in addition to full time TAFE so don’t get many days off,” he said.

ACOSS calls on the Federal Government to lift JobSeeker, Youth Allowance, Parenting Payment and related income support to parity with the pension and pension supplement, at least $618 a week on current rates, and index payments to wages as well as prices.