Are beneficiary incomes too low?

 The new government is going to come under a great deal of pressure to lift beneficiary incomes from many quarters: CPAG, AAAP, Salvation Army, The Christian Council of Social Services, to name a few advocacy groups. Their parliamentary partners, the Greens, will also be exerting pressure.

Are beneficiary incomes too low?

One way of looking at it is, how do they compare internationally?

Below I have charted the assistance available to a single parent in Australia versus a single parent in New Zealand. I've only included the major income components: basic benefit rate, family tax credits for children and accommodation assistance. Certainly in NZ there is extra assistance available via special grants for additional accommodation needs, food etc. As well in Australia anyone currently on a benefit is receiving a Corona Virus $125 weekly supplement until December 31, 2020. That is not included. I modelled a parent with young children as that is when they are most likely to be on income support.

Although NZ's basic benefit rate is lower, family tax credits are slightly higher and maximum accommodation supplements are a lot higher resulting in a substantial difference between total incomes. Yes, its slightly cheaper to rent in Brisbane than Auckland but the government is only going to pick up a small portion of the cost.

Sources:

https://www.servicesaustralia.gov.au/individuals/services/centrelink/parenting-payment/how-much-you-can-get

https://www.servicesaustralia.gov.au/individuals/services/centrelink/family-tax-benefit/how-much-you-can-get/ftb-part-payment-rates#baserate

https://www.servicesaustralia.gov.au/individuals/services/centrelink/rent-assistance/how-much-you-can-get

https://www.workandincome.govt.nz/products/benefit-rates/benefit-rates-april-2020.html#null