Thursday, 20 September 2012
Newstart allowance provides a financial safety net for Australians while they seek to re-enter the labour market. It is indexed by the CPI. Unlike Newstart allowance, pensions are designed for those who are not expected to or have little or no ongoing capacity to support themselves through employment due to factors such as age, illness or disability.
The Senate Standing Committee on Education, Employment and Workplace Relations is currently conducting an inquiry into the adequacy of the allowance payments system, including the Newstart allowance. The committee is due to table its report on 29 November. The government has publicly stated that it would listen to the findings of the Senate committee with an open mind. This will be done in the context of fiscal responsibility and the budget's bottom line.