The government's universal $300 energy bill relief will lead to lower welfare indexation, eroding the benefits for welfare recipients.Welfare advocacy group ACOSS says the government could have targeted energy bill relief to those in need.
"We want to make sure that every Australian gets support during cost of living pressures, which everyone is feeling," Mr Albanese said. That suggests any 'reduction' in inflation from the energy bill relief would make little difference to the likelihood of interest rate cuts. In terms of fortnightly payment rates, the difference appears small, in the order of $4-$5 less each time the payment is indexed, beginning with the indexation next March.For example, by the end of 2025, a single parent receiving the highest level of JobSeeker, Youth Allowance or the Parenting Payment would have lost $84 of the $300 benefit.
Similar results would be seen in share houses with multiple welfare recipients, since the energy bill relief is paid by household, but the lower indexation affects each individual. And Cassandra Goldie, chief of welfare advocacy group ACOSS, said it was "extraordinarily wasteful" and accused the government of "cruelly denying people receiving unemployment payments decent income support."
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