The Australian Council of Social Service (ACOSS) has recently voiced its concern about the changes to income support for young Australians from January 1. According to the ACOSS, the changes to the Youth Allowance and Austudy payments are not enough to cover the basic needs of young people.
The new changes, which come into effect from January 1 each year, are aimed at adjusting for inflation and ensure that young people can continue to access financial support. The Youth Allowance rate will rise by at least $19 a fortnight in 2023, with youth and student payments to be indexed by more than 6 per cent.
Austudy recipients will experience a fortnightly rate increase of between $32.40 and $41.40, depending on their living arrangements and whether or not they have dependent children.
However, the ACOSS believes that this is not enough to pay the bills. According to the Council, the rate adjustment will not keep up with the rising costs of living, and many young people will still be struggling to make ends meet.
Cassandra Goldie, CEO of ACOSS, declared that the customary indexation of income support payments is not sufficient to provide individuals with a livable wage.
“On January 1, the indexation of payments does not provide the significant salary raise that many are desperately longing for,” Mr. Goldie said.
“Before the prices of food, rent, medicines, energy and other essentials skyrocketed, income support payments were grossly insufficient, and even after indexation, they will still be totally inadequate.”