Read The Times Australia

Daily Bulletin

The coronavirus supplement is the biggest boost to Indigenous incomes since Whitlam. It should be made permanent

  • Written by: Francis Markham, Research Fellow, College of Arts and Social Sciences, Australian National University

On March 23 the government effectively doubled payments to the unemployed, single parents and students, introducing a new unconditional Coronavirus Supplement to go on top of existing allowances such as Newstart, Youth Allowance, Parenting Payment, Austudy and Abstudy.

From April 27 single unemployed adults will get around A$557.85 per week in income support, almost double the previous $282.85 per fortnight.

This additional support is time-limited, applying for only six months.

As well as covering the newly unemployed, it’ll extend to existing recipients, meaning it’ll be paid to about 2.3 million Australians.

Read more: Coronavirus supplement: your guide to the Australian payments that will go to the extra million on welfare

At the same time, the onerous requirement for recipients in remote Australia to conduct “work-like activities” or face fines and suspensions, has itself been suspended because work-like activities carry added risk.

The temporary doubling is intended to shield those who find themselves unable to find work at a time when the government has shut down large sections of the economy.

But it will have another (welcome) unintended consequence: it will temporarily cut poverty among Indigenous Australia to new lows.

Most very remote Indigenous Australians live in poverty

The income support system has failed for decades to keep Indigenous people out of poverty. At the time of the 2016 Census, 31% of Indigenous Australia lived below the poverty line of $404 per week.

And while the overall financial situation of Indigenous Australians improved over the decade from 2006 to 2016, in very remote Australia, poverty got worse.

Already alarmingly high in 2006 at 46%, by 2016 the proportion of very remote Indigenous Australians in poverty had climbed to 54%.

Percentage of Indigenous population living in poverty

The coronavirus supplement is the biggest boost to Indigenous incomes since Whitlam. It should be made permanent Indigenous poverty rates using the ‘50% of median disposable equivalised household income’ poverty line. Markham and Biddle, 2018

Since then things have changed, for the worse.

According to Bureau of Statistics survey data, median Indigenous personal incomes fell from $482 per week in 2014-15 to $450 in 2018-19.

In remote Australia the fall was more precipitous.

Over those five years remote median Indigenous personal income fell from $375 per week to $310.

Median Indigenous income, 2014-15, 2019-19

The coronavirus supplement is the biggest boost to Indigenous incomes since Whitlam. It should be made permanent Median gross personal weekly income, Indigenous population aged 15-64. Author's calculations from the National Aboriginal and Torres Strait Islander Social Survey 2014-15 and National Aboriginal and Torres Strait Islander Health Survey 2018-19

The Coronavirus Supplement is set to dramatically change things.

Before the coronavirus outbreak about 27% of the Indigenous population aged 16 years or older were receiving payments that make them eligible for the Supplement.

The proportion who will actually get it be much greater, as many more will become unemployed or underemployed as a result of the crisis.

Read more: Three charts on: the changing status of Indigenous Australians

Indigenous workers are likely to be especially hit hard by the downturn due to discrimination and their more-precarious employment status.

The extra $225 per week is well-targeted at the poorest Indigenous Australians.

According to my estimates, around 38% of Indigenous adults in very remote areas will be eligible.

The biggest boost in 50 years

It is likely to be the most substantial increase in aggregate Indigenous incomes since Indigenous people won rights to equal wages and the full range of social security payments between 1969 and 1977.

In very remote areas, total community incomes are likely to increase by one quarter.

Indeed, so significant is the boost that remote community stores may run out of food as incomes start to catch up with people’s everyday needs, a concern expressed by the minister for Indigenous Australians Ken Wyatt.

It should be made permanent

It would be misguided to think Indigenous Australians need only temporary relief.

The Indigenous economy has been in crisis since 1788. The unemployment rate in places like Palm Island was 60% before the coronavirus hit.

The average duration of unemployment for Indigenous Australians is 73 weeks.

For Australia as a whole, it is 11 weeks.

Read more: Census data shows just how bad we've been at closing inequality gaps

The unfavourable job market now facing many Australians for the first time has been the normal state of affairs for many Indigenous people.

For this reason, the temporary increase to income support should be made permanent, and the suspended mutual obligation requirements abolished.

Doing so, and normalising some of the anomalies of the current arrangement (such as the exclusion of disability support pensioners, age pensioners, and temporary residents) would provide all Australians with an income floor below which no one could fall.

Read more: It's Newstart pay rise day. You're in line for 24 cents, which is peanuts

For Indigenous Australians, it would lock in the biggest reduction in poverty rates since the 1970s.

It would be affordable — it’s only a question of our priorities.

The crisis has reminded us once again how much we depend on each other. We can use it to rebuild a society which is fairer and in which no one is forced to struggle in deep poverty.

This article draws on the author’s contribution to the collection Indigenous Australians and the COVID-19 crisis: Perspectives on public policy, published by the Centre for Aboriginal Economic Policy Research at the ANU.

Authors: Francis Markham, Research Fellow, College of Arts and Social Sciences, Australian National University

Read more https://theconversation.com/the-coronavirus-supplement-is-the-biggest-boost-to-indigenous-incomes-since-whitlam-it-should-be-made-permanent-135936

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...

Why Your Dental Clinic Is Not Getting Enough New Patient Bookings From Google

Introduction SEO for Dentist is not just about getting a dental clinic to appear somewhere on Goo...

Low Water Pressure in Sunbury: Is the Problem Inside Your Home or Outside It?

Low water pressure is one of those problems that can send a homeowner in the wrong direction. A we...

4 Beige Rugs for Beautiful and Comfortable Wooden Flooring

Wooden flooring already brings warmth and character to a room, but a beige rug can make that found...

How to Fix Poor Subfloor Ventilation in Older Homes

Older homes have character, but many were built before today's ideas about moisture and airflow were...

Early Engagement on Instagram: What Those First Reactions Really Tell You

The first few hours after an Instagram post goes live are worth paying close attention to. A massi...

Why Preventive Care Matters for Heavy-Duty Equipment

Heavy-duty equipment is designed to operate reliably under demanding conditions and over extended ...