Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697629476863.pdf (Australia)
Document Title 19/09/2019 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia Advocacy for Inclusion (AFI) is a national systemic body representing people with disability in the ACT.

AFI in this role undertakes systemic advocacy and provide expert policy advice on issues affecting people with disabilities through our individual advocacy client and membership base.
Our client range is broad, with issues ranging from NDIS matters, housing, employment, justice, parenting with disability, guardianship and inclusion support.

We appreciate the opportunity to provide the Australian Parliamentary inquiry with our experiences and expertise in relation to issues faced by people with disabilities receiving Newstart and related payments, including the Disability Support Pension (DSP).

AFI endorses the work of ACOSS1 and their public ‘Raise the Rate’ campaign.
We echo their call for action and clarity to lift the Australian social poverty rate under Newstart and related payments, particularly in the context of people with disabilities who are ineligible to receive or were transferred to Newstart from the DSP.

AFI is concerned that the Federal Government is not maintaining accountability nor fairness – a value that is fundamental to Australia – to a growing social poverty issue and reality of living on Newstart and related payments.
The payment of Newstart has not been risen since 19942, pushing people further into poverty when the payments do not reflect the true and accurate living circumstances of people in 2019.3 4 5 6 We echo calls to raise Newstart and related payment in essence that the payments accurately reflect the rising costs of living which in turn, 1 Australian Council of Social Service (2018) "Poverty in Australia 2018", Australian Council of Social Service in partnership with UNSW Sydney.
2 RMIT ABC Fact Check (2019) ‘Are more than 90 per cent of Newstart recipients receiving other benefits, including the Parenting Payment and Rent Assistance?’, ABC News Online, 15th August 2019, accessed 17/09/2019, https://www.abc.net.au/news/2019-08-14/fact-check-newstart-90-percent-of-payments-another- payment/11405036 3 The Social Policy Research Centre at UNSW (2017) ‘Budget Standards for Low-Paid and Unemployed’, in partnership with ACOSS, Catholic Social Services Australia and United Voice.
4 ACOSS (2019) A roof over every head, a meal on every table.

Government must raise the rate, Factsheet 5 Deloitte Access Economics, (2018).

Analysis of the impact of raising benefit rates.

Report prepared for ACOSS.

https://bit.ly/2NQ6EtM 6 Soldatic, K. and Sykes, D. (2017).

Poverty and People with a Disability.

Chpt 13 in ‘Thinking About Poverty’ 2nd ed.

K Serr (Ed).

Federation Press, Sydney.


1 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 comprises the growth of the economy when people are unable to seek work due to their circumstances, including disability.
In Australia, people with disability are nearly twice as likely to be unemployed as people without disability.7 8 We acknowledge that Newstart is a tax-funded allowance that provides a safety net for people whilst looking for employment and has increase twice a year each year in line with the Consumer Price Index (CPI).
Yet, the demand to raise the rate of Newstart is not new, and it is disappointing that continuous campaigning from grassroots advocacy organisations that work with people on the ground and are privy to stories of poverty, inactive job service providers and choice over basic living necessities are still being reproached by the Federal Government.
Newstart has a widespread purpose in Australia’s social security system that, since 2013, has been reformed to move people (including those with a disability) from higher-paying benefits (DSP, Parenting Payment) to Newstart.9 Since 2012, there has been an increase in the proportion of people deriving more than 90% of household income from welfare, but no net change in the proportion deriving more than 50% of income from welfare.
10 It is a measure which demonstrates a rise in inequality and for those with persistent low incomes that cannot get ahead in their daily living.

The stories of people suffering and unable to get ahead has been featured heavily since the release of ACOSS’s campaign, ‘Raise the Rate’ and common in their collective disadvantage.
The reality is that the Newstart rate of payment is meagre, despite additional payment benefits on top where people are eligible.11 12 Australia does perform well against countries that receive less generous public entitlements comparable to Newstart; however Australia’s benefits still sit below the Henderson Poverty Line and against Article 9 of the International Covenant on Economic, Social and 7 Australian Bureau of Statistics (ABS) (2012), Disability and Labour Force Participation, cat.

4433.0.55.006.
8 Australian Human Rights Commission (2016), Willing to Work: National Inquiry into Employment Discrimination Against Older Australians and Australians with Disability; ISBN 978-1-921449-76-5 9 RMIT ABC Fact Check (2019) ‘Are more than 90 per cent of Newstart recipients receiving other benefits, including the Parenting Payment and Rent Assistance?’, ABC News Online, 15th August 2019, accessed 17/09/2019, https://www.abc.net.au/news/2019-08-14/fact-check-newstart-90-percent-of-payments-another- payment/11405036 10 Roger Wilkins, Inga La, Peter Butterworth and Esperanza Vera-Toscano (2019) The Household, Income and Labour Dynamics in Australia Survey: Selected Findings from Waves 1 to 17.
Melbourne Institute: Applied Economic & Social Research, University of Melbourne.

11 Phillips, B and Cukkoo, J.
(2019) ‘FactCheck: do 99% of Newstart recipients also receive other benefits?’, The Conversation, May 17th 2019: https://theconversation.com/factcheck-do-99-of-newstart-recipients-also-receive- other-benefits-116667 12 RMIT ABC Fact Check (2019) ‘Are more than 90 per cent of Newstart recipients receiving other benefits, the Parenting Payment and Rent Assistance?’, ABC News Online, 15th August including 2019 ://www.abc.net.au/news/2019-08-14/fact-check-newstart-90-percent-of-payments-another- payment/11405036 Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 2 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 Cultural Rights (ICESCR).13 It is dramatically below the mean replacement rate among OECD countries selected where Newstart is the second-lowest unemployment payment within the OECD.14 15 In 2013, the Newstart rate represented 28% of the average wage16 in Australia.
According to the Economic and Social Council, the Federal Government must take effective measures within ‘maximum available resources’ to fully realize the right to social security with such social security measures should be periodically revised.17 For people with disability, including psychosocial disability, finding continuous and engaging employment can be difficult when navigating limited job prospects, transport, equipment and support.
The notion of the Federal Government’s claims that ‘the best form of welfare is a job’,18 is a utopian notion at best, particularly when the current systemic barriers for people with disabilities living on Newstart and related payments are profoundly inadequate.
The barriers to employment for people with disabilities have always been high, and jobs are not suited to their wellbeing, capacity and genuine health setbacks that continue to be stuck on Newstart as a form of welfare when the DSP is restrictive in criteria.
This cannot be helped.19 20 21 Australia's trend unemployment rate increased in July 2019 to 5.3 per cent.22 23 One-in-four (24%) people with disability across Australia are currently on Newstart, who were either shifted to Newstart from the DSP or were found ineligible for the DSP.24 In 2012,25 there were 2.2 million (14.4%) Australians aged 15-64 years, of 'prime working age', with disability.
Just over half (51.0%) of people with disability in this age bracket were women.26 Disability employment policy has been lacking 13 Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR), ‘recognize(s) the right of everyone to social security, including social insurance’ 14 OECD (2013) Benefits and Wages: Income levels provided by cash minimum-income benefits (Excel files).

OECD: Organisation for Economic Co-operation and Development.
Online: http://www.oecd.org/els/benefitsandwagesstatistics.htm.

15 OECD, (2017).

Benefits and wages: statistics.

https://bit.ly/2lKdW1t 16 For single individuals only 17 Economic and Social Council, General Comment No.

19, The right to social security (Art.

9), Committee on Economic, Social and Cultural Rights, Thirty-ninth session, 5-23 November 2007, p. 2.
At www.unhcr.org/refworld/pdfid/47b17b5b39c.pdf 18 Prime Minister, Scott Morrison in APH House of Representatives Hansard, 29th July 2019, p.44 19 Mesén Vargas, J, & Van der Linden, B, (2018).

Is there always a trade-off between insurance and incentives?

The case of unemployment with subsistence constraints.

20 O'Campo, P, et al., (2015).

Social welfare matters: A realist review of when, how, and why unemployment insurance impacts poverty and health.

Social Science & Medicine 132:88-94.


21 Meyer, Bruce D., and Wallace, KC Mok.
2018, “Disability, earnings, income and consumption”, Journal of Public Economics, https://doi.org/10.1016/j jpubeco.2018.06.011 22 New figures at time of writing were yet to be released reflecting trends from August 2019 23 ABS (2019) Labour Force, Australia July 2019, cat.6202.0 24 ACOSS (2018) Faces of Unemployment, Australian Council of Social Service and Jobs Australia, p.3 25 In 2012, of people aged 15-64 years with disability, 47.3% were not in the labour force, that is they were neither employed nor actively looking for work.
This is significantly higher than people without disability (17.5%).

The ABS Disability and Labour Force Participation data has not been updated since 2012, making it difficult to determine accurate data of the number of people with disability in the current workforce.

26 ABS (2012) Disability and Labour Force Participation 2012, cat.
4433.0.55.006 Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 3 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 significantly despite continuous inquiries at State and Territory and Commonwealth Government level, with recommendations not addressing the rates of unemployment faced by people with disability.
The rates of employment for people with disability remain at low levels in comparison to other OECD countries27 28 People with disability may or may not be eligible for the National Disability Insurance Scheme (NDIS) and be stuck on Newstart or even the DSP, hindering their employment and training prospect if they cannot adequacy perform their role with the right support or equipment.29 For people with disabilities and mental health, the choice between food, bills and utilities above medication, equipment costs and support (whether eligible for the NDIS or not) is a dire issue.
These issues are further encompassed when Newstart requires 20 jobs to be applied for in a month30 with no flexibility or understanding of circumstances as to why training is incomplete, and jobs are wholly unsuitable to the individual, even though jobseekers in Disability Employment Services (DES) is dependent on their capacity.
ACOSS and Jobs Australia found that only 32% of people with disability in 2017 were successfully employed after participating in Jobactive after 3 months.31 32 CASE STUDY Adam was on Newstart, but with the assistance of an AFI’s advocate, he attended an assessment that determined him to then be suitable for the DSP as he had trouble meeting the job search requirements due to his health and mental health.
Adam, with mental health/ health issues, struggled to pay for his ongoing mental health and medical treatments on top of daily living requirements.

He would forgo his medication above his rent, food and utility bills.

Adam’s employment prospects were dismal as job agencies and services could provide minimal support to Adam.

Staff were also untrained and inexperienced in working with people, like Adam, with complex needs and additional support requirements.
This made matters worse for Adam in accessing employment that was right for him, as well as safe, supportive and within his skill capacity.

27 OECD (2010), Sickness, Disability and Work: Breaking the Barriers, p. 51 28 AIHW (2011), Disability Support Services 2009–10: Report on services provided under the National Disability Agreement, Disability Series, cat.

no.
no.

DIS59, Canberra 29 At time of writing, the National Disability Insurance Scheme (NDIS) Employment Taskforce is being established and will investigate the best way NDIS participants will be supported in seeking employment through the Scheme and via existing mainstream services like Disability Employment Services.

30 Australian Government (2019) Job Search – Setting Job Search Requirements – General, Social Security Guide, v.1.257.
31 ACOSS (2018) Faces of Unemployment: Figure 14: Proportion of people employed 3 months after participating in jobactive during 2017, Australian Council of Social Service and Jobs Australia, p.5 32 Department of Jobs and Small Business (2018) The next generation of employment services, Appendices.
Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 4 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 In our experience, job agencies and services33 offer little support to people with disabilities and complex needs that cannot fill standard employment positions such as cleaning, support work, machinery or administration.34 The Federal Government’s focus is on ‘helping people move from welfare into work’ by ‘driving growth in the economy and generating jobs’ 35, yet the reality of people with disabilities trying to access an appropriate role is dire when the number of roles suited is dismal.
Ensuring that people with disability enter positions that interest and motivate them is crucial if it is expected that they work.

In our experience, we have found positions that are offered by DES or Jobactive are inappropriate to people with disabilities with low skills causing further demoralisation, lack of motivation to continue and low self-esteem.
There are scarcely jobs generated designed for people with disabilities, and it is hoped that if there is, that the organisation or company are inclusive and accommodating of disability in the workforce.

Training organisations also don’t provide alternative learning styles or assessments for people with disabilities, causing drop-out rates and incomplete training development due to training staff being untrained and ill-resourced to work with people with disabilities and mental health.
CASE STUDY “The staff are not interested.

They are in control of you and your direction in your job search” Ben has a physical disability.

He expressed interest in learning agriculture and animal care as a vocational direction after leaving school.

He located a course of interest, but the course lapsed due to low interest in attendance to fill the class quota.

Ben searched for another course, but due to limited availability, location of courses and support requirements, he could not obtain a new place.
Ben was on the DSP.

He approached a jobactive provider in hope to find an alternative option for his interests and career direction.

He became disillusioned and his self-motivation was hindered as the jobactive staff member continued to push him towards roles that did not suit his interests, knowledge or willingness to learn.
He described the staff member as concecending regarding his job interests and the field he wished to enter through an assumption made that ‘he couldn’t do that kind of work’, point referencing his disability.

He felt the staff member did not make efforts or attempts to assist him in his actual interest and more focused on finding ‘any job’ to meet the KPI requirements of her role.
33 Employment programs accessed by clients of AFI include Disability Employment Services, Community Development Program (for remote Aboriginal and Torres Strait Islander communities), wage subsidies, Transition to Work (for young early school-leavers), and Youth Jobs PaTH (for young unemployed people) 34 AFI looked at the jobactive websites to check highest mentioned positions on offer by job agencies and services – these were the top results.
35 APH House of Representatives Hansard, 31st July 2019, p.48 Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 5 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 Current DES and Jobactive organisations are not performing adequately.36 People with disability are only receiving part of the services and not receiving adequate support to obtain employment, training or support that meets their needs.
The changes to the eligibility processes of the DSP, shifting people onto Newstart and related payments, have further complicated the process of sourcing employment and additional support is not a prerequisite for Jobactive providers to deliver – people with disability are treated the same as everybody else and given no special treatment – thus leaving people with disabilities on Newstart far longer than necessary and are condemned to long-term unemployment.
There is a strong economic imperative to encourage employee participation for people with disabilities and building human capital.

Increasing access to employment opportunities is also key to improving economic security and personal wellbeing for people with disabilities, their families, carers and the disability workforce as a whole.
A vast majority of people with disabilities can and do want to work and be financially independent; however, Australia has been lagging other countries when it comes to inclusion in the workplace, strong policies in place and job retention.

Under social security, the need to address current disability unemployment is necessary before the assumption is made that people with disability do not want to work.
It is disappointing that previous policy such as the Willing to Work inquiry conducted by the Australian Human Rights Commission37 is yet to be implemented.

To follow on from the recommendation made by ACOSS, we recommend that the development and implementation of a social welfare committee that monitors and reviews Newstart and related payments (including the DSP), to comprise interaction with the National Disability insurance Agency (NDIA).
For people with disability to enter the workforce with full support, working equipment and disability accommodated workplaces, the NDIS is often the first step to full integration within society.

For that are ineligible for NDIS, reviewing and monitoring DES and Jobactive where people with disability are expected to approach to apply for work, enduring that people with disability are treated more fairly by encouraging them to approach roles that suit them, their capacities and their interests.
Raising the rate of Newstart would result in a direct stimulus to the Australian economy38 - noting that people on Newstart are not able to save due to the existing demands on their finances and would inject any additional income directly into the local economy.
Raising Newstart by the recommended 36 APH (2019) Jobactive: failing those it is intended to serve: Final Report, Commonwealth of Australia 37 Australian Human Rights Commission (2016), Willing to Work: National Inquiry into Employment Discrimination Against Older Australians and Australians with Disability; ISBN 978-1-921449-76-5 38 ACOSS (2019) ‘GDP figures confirm economic case for urgent increase to Newstart and investment in social housing’, Media Release, 4th September 2019 via: https://www.acoss.org.au/media_release/gdp-figures-confirm- economic-case-for-urgent-increase-to-newstart-and-investment-in-social-housing/ Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 6 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90 $75 a fortnight39 40 will have positive effects on the Australian economy by creating employment growth and productivity, creating a sense of personal wellbeing for people to afford to sustain themselves and engage in the workforce more positively.
Every spare dollar received by individuals on Newstart and related payments will be ejected back into the economy through small stimulus bursts.

Increasing Newstart and related payments will likely improve poverty for those unemployed, including reducing pressure on health, social support systems and strengthen communities and boost inclusion to work to raise above the Henderson Poverty Line to increase Australia’s safety net.
The Federal Government can afford to provide a stronger safety net but are ultimately choosing to believe that if people are not filling jobs, they are unwilling.

In conclusion, AFI strongly supports demands to raise the rate with evidence that the current welfare means of Newstart and related payment are inadequate, unsustainable and unfair for people with disabilities and their peers.
We actively support and promote social justice to ensure that a rise in Newstart will increase employment participation, productivity and social inclusion within Australia.

It is the responsibility of government to ensure our social security and welfare systems are sustainable into the future so that it continues to provide support for those most in need – Raise the Rate.
Written and prepared by Bonnie Millen, Senior Human Rights Policy Advisor 2.02 Griffin Centre, 20 Genge Street Canberra City ACT 2601 Phone: 02 6257 4005 ABN: 90 670 934 099 39 Deloitte Access Economics state that raising Newstart by $75 would generate 12,000 new jobs in 2020-21, increase wages by 0.2%, and increase government revenue by $1.25 billion.

Deloitte Access Economics, (2018).

Analysis of the impact of raising benefit rates.

Report prepared for ACOSS.
https://bit.ly/2NQ6EtM 40 Henriques-Gomes, L. (2019) Reserve Bank Governor Suggests Newstart Increase Would be ‘Good for the https://www.theguardian.com/australia- Economy’, news/2019/jun/21/reserve-bank-governor-suggests-newstart-increase-would-be-good-for-the-economy Guardian Online, 2019: June 21st The Response to Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia 7 Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support paymentsin AustraliaSubmission 90