While Newstart payments have not increased in real terms for about 25 years, the cost of everyday groceries has continued to rise.
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The Salvation Army’s Major Paul Moulds said the recently-released results of the 2018 Economic and Social Impact Survey, which found the average Newstart recipient was living on just $17 a day, confirmed the federal budget had failed Australians doing it tough.
“It is simply inhumane that corporations and wealthy households are handed a tax cut, while the most disadvantaged and marginalised people in this country continue to be ignored,” he said.
“It is widely acknowledged it will take a minimum increase of $75 a week just to ensure people can live on the poverty line – let alone above it.
“With increases in the cost of living, we see people going without medication, skipping meals and adequate winter heating because they are caught in the cycle of poverty.”
Figures from the Australian Bureau of Statistics show the unemployment rate was 5.5 per cent in May, with 723,700 unemployed people in the country.
In 1994, the last time Newstart was increased in real terms, the single unemployment and sickness benefit was about $294 per fortnight.
According to the Reserve Bank of Australia, that would be $526 in today’s rates – compared to the current $545 base payment.
A Coles catalogue from 1992, found in Fairfax archives, states one kilogram of BBQ lamb chops cost $2.98 – which would be $5.53 when adjusted for inflation.
Currently the supermarket sells lamb forequarter chops for $13 per kilo.
That same year, Murray’s Tuckerbag sold Granny Smith apples for $1.59 per kilo and carrots for 89 cents, which would be $2.95 and $1.65 in today’s rates.
Currently, Woolworths is selling Granny Smith apples for $4.50 per kilo and carrots for $1.90 per kilo.
While the price of healthy food may have increased, less nutritious snacks have stayed about the same.
In 1992, Foodmaster Supermarkets sold 200gram packets of Smiths original potato chips for $1.99 – which would be $3.70 today.
Coles is currently selling 170g packets of Smiths chips for $3.30.
Earlier this year, former prime minister John Howard joined leading business figures in calling for Newstart payments to be increased, saying there was a debate to be had about increasing the level of payment from $40 a day.
