Vinnies proposes raising jobseeker payments to 90% of the age pension, funded by reducing super tax concessions | Welfare

A proposed welfare reform package that increases the jobseeker payment to 90% of the age pension could lift 590,000 Australians out of poverty, with the $11bn cost covered by modifications to super tax concessions that would still leave most savers better off, according to an Australian National University paper for the St Vincent de Paul Society. The report, titled “A Fairer Tax and Welfare System for Australia,” suggests a range of options aimed at benefiting those most in financial need, financed by a modest contribution from those with higher incomes. The package includes increases to commonwealth rent assistance and payments to families and single parents, in an attempt to make the country more equitable alongside a focus on productivity improvements. The ANU report sets the poverty line at $486 a week, yet the current jobseeker rate sits at approximately 75% of the single age pension, with the proposal suggesting a weekly increase of around $80 to bring it to 90%. This reform would effectively reverse a pendulum that has swung too far towards worries about work disincentives, the report argues, emphasizing the need for balance. The report also advocates for annual increases in the jobseeker rate tied to wages, rather than inflation, along with enhancements to the family tax benefit and additional support for renters and those on disability support pensions. The reforms would be funded by adjusting super tax concessions, with the majority of savers potentially seeing no negative impact or even benefiting slightly. However, those with incomes above $190,000, where the marginal tax rate is 45%, would see a negative impact.

Source: https://www.theguardian.com/australia-news/2025/jul/24/jobseeker-super-tax-vinnies-st-vincent-de-paul-welfare-reform-poverty-report