JobSeeker Payments and Welfare Reform: Key Insights from the 2025 EIAC Report

For many Australians relying on JobSeeker Payments, discussions around future reforms are more than just political debate—they are questions of survival, dignity, and basic opportunity.

As the cost of living continues to rise and economic uncertainty looms, the Australian welfare system is under increasing pressure to adapt. The question remains: what will the future of JobSeeker look like, and how might it change in the years ahead?

We already explain what is this program, if you still don’t know about it, check it here.

JobSeeker Under Review: A Turning Point

Over the past year, public scrutiny around JobSeeker Payments has intensified. Advocacy groups, economists and even crossbench senators have called for a meaningful increase to the base rate, currently set at $789.90 per fortnight for a single adult without children (as of March 2025).

When compared to the minimum wage or rising rental costs, many argue that the payment is insufficient for even the most basic standard of living.

A 2025 report by the Economic Inclusion Advisory Committee, formed by the Albanese government, recommended a “substantial increase” to JobSeeker.

The report highlighted that the payment is currently well below the poverty line and warned of long-term negative outcomes for those who remain stuck on it.

At the same time, Welfare Reform in Australia is also being debated in broader terms, including eligibility rules, job search requirements, and how Centrelink supports individuals in vulnerable situations.

Why a Raise in JobSeeker Matters

It’s not just a matter of extra dollars. Increasing JobSeeker Payments is often framed by policy experts as an investment in human dignity, long-term productivity, and even local economies.

Low-income Australians typically spend their income on essentials like rent, food, transport, and medicine—creating a direct flow of money back into their communities.

According to modelling by the Australian Council of Social Service (ACOSS), raising JobSeeker by $20 a day could lift more than 500,000 people out of poverty.

The measure would benefit not only unemployed Australians but also people in casual or insecure work who rely on welfare during low-income periods.

However, critics argue that raising payments too much could discourage people from seeking work.

This is where the broader conversation about Welfare Reform Australia becomes important: it’s not just about how much money is paid, but also how the system supports people to re-enter the workforce in sustainable and meaningful ways.

Evolving Eligibility: Who Should Receive Support?

While much of the current debate focuses on how much JobSeeker Payments should increase, there is an equally pressing conversation about who should be eligible and under what conditions.

In recent years, there have been calls for a more compassionate and inclusive approach to welfare, particularly from those who argue that the current system is too rigid and punitive.

At present, eligibility for JobSeeker is determined based on age, employment history, asset tests, and willingness to engage in mutual obligations—such as attending job interviews or enrolling in training.

However, many welfare advocates have pointed out that these conditions often do not reflect the real-world challenges faced by those looking for work, especially older Australians, people with disabilities, and carers.

Mutual Obligations or Meaningful Support?

This brings us to a critical point in the discussion around Welfare Reform in Australia: the shift from compliance-based support to person-centred assistance.

Several think tanks and academic institutions have suggested that Australia should explore models used in other countries, where welfare recipients are provided with individualised support plans rather than one-size-fits-all rules.

The Brotherhood of St Laurence, for example, has advocated for a “reform of employment services” that recognises the complexity of barriers to work—ranging from poor mental health and caring responsibilities to low digital literacy.

The focus, they argue, should move away from punishment and toward empowerment.

This shift could mean big changes to how JobSeeker Payments are accessed and maintained in the future.

If policy moves in this direction, Australians may see fewer sanctions and more emphasis on providing training, mental health support, and career counselling tailored to individual needs.

Insights

The EIAC’s top recommendation for the 2025–26 Federal Budget is clear: substantially raise the base rate of JobSeeker and related working-age payments.

• Key Finding: JobSeeker remains at just 43.5% of the net minimum wage and has fallen to one-third of the OECD relative poverty line, the largest drop among OECD nations.

Research commissioned for the report found that increasing JobSeeker to 90% of the Age Pension would yield significant national benefits:

• Improved physical and mental health
• Reduced long-term health and criminal justice costs
• Increased workforce participation and productivity
• A $1.24 return for every $1 invested

Housing Stress and the Role of CRA

The report praises recent increases in Commonwealth Rent Assistance (CRA) for reducing rental stress. Yet, over 200,000 recipients still pay more than 50% of their income in rent.

• Recommendation: Further increase CRA rates to match actual rent costs in today’s tight housing market.

CRA has helped reduce the share of renters in stress (paying more than 30% of income on rent), but the depth of stress remains severe. Without CRA, nearly 30% of renters would spend over half their income on housing.

Flaws in the Employment Services System

The EIAC also declares that Australia’s employment services system is broken. Workforce Australia is criticised for:

• Overemphasising mutual obligations and punishment
• Lacking connection to real job outcomes
• Failing to support people with complex barriers

Over 125,000 people have been in the system for more than five years, and the long-term unemployed now make up 60% of payment recipients.

Proposed reform: Replace Work for the Dole and compliance frameworks with human-centred services focused on skills, wellbeing, and long-term employment outcomes.

Domestic Violence and Inadequate Support

Emerging research links insufficient income support with higher rates of victim-survivors returning to abusive relationships.

Barriers in the payment system—like strict mutual obligations or long delays—make it harder for people in crisis to escape violence safely and permanently.

• Insight: Only 26% of support recipients permanently leave their abuser the first time, compared to 45% of wage earners.

Remote Australians Left Behind

The report shines a light on Remote Area Allowance (RAA), highlighting its stagnation since 2000. Despite the extreme cost of living in remote communities, the allowance remains at just:

• $18.20 per fortnight for singles
• $15.60 per person for couples

The EIAC Recommendation is increase the RAA and index it to inflation to prevent further disadvantage in remote areas.

Remote Australians—especially First Nations communities—face limited food access, higher transport costs, and scarce employment opportunities. A modernised RAA would help bridge this structural gap.

Reforming How Poverty Is Measured

The current 50% of median income threshold used to measure poverty is outdated, according to the EIAC. It does not capture the actual lived experience of poverty, such as skipping meals, avoiding heating, or inability to afford transport.

• EIAC Proposal: Develop a new Australian poverty measure, combining relative income thresholds with indicators of deprivation and hardship.

Such a measure would provide a clearer picture for policy makers and increase public understanding of how JobSeeker Payments and other supports affect real lives.

Children in Disadvantage Need Urgent Support

The EIAC emphasises the importance of investing in early childhood as part of long-term Welfare Reform in Australia.

• Key Insight: Children in disadvantaged households are at risk of developmental delays, lower school readiness, and poorer long-term health.

The committee supports expanding:

• Access to early childhood education
• Parental leave for carers
• Targeted programs for vulnerable families

Investing early helps break the intergenerational cycle of poverty and reduces future spending on health, housing, and justice.

Looking Ahead: What Might Change?

With the federal government signalling a preference for incremental reform, what realistic changes might Australians expect in the near future?

Firstly, it’s likely that JobSeeker Payments will continue to receive small increases in future budgets, especially as cost-of-living pressures remain high. While the Albanese government has not committed to a fixed timetable or figure, ongoing advocacy and strong public sentiment may push for at least a liveable baseline to be established.

Secondly, we may see reforms to mutual obligations. Instead of rigid job application quotas and checklists, there is growing interest in trialling more individualised employment services, particularly for vulnerable or long-term unemployed groups.

The Employment Services Inquiry currently underway in Parliament is expected to provide recommendations in this direction.

Thirdly, there is increased attention on ensuring that the welfare system better supports older Australians, people with disability, and single parents—groups that are disproportionately disadvantaged under current policy settings.

A System Under Pressure, A Nation in Reflection

The debate around Welfare Reform in Australia is not simply about numbers in a budget. It is a reflection of national values: how we treat people when they are out of work, how we define fairness, and how we build resilience in a changing economy.

Many Australians are no longer just concerned about whether JobSeeker Payments will be enough for “other people.”

With growing job insecurity, casualisation of work, and rising living costs, more citizens are beginning to realise that the social safety net must be strong, fair and responsive—because one day, any of us might need it.

At the same time, economic uncertainty and budget constraints mean that political leaders must weigh every dollar carefully.

The challenge is to balance short-term fiscal realism with long-term social investment—to build a welfare system that is not just about survival, but about helping people rebuild and thrive.

Final Thoughts

The future of JobSeeker will not be defined by one decision, one budget or one government. It will be shaped by a complex mix of policy, politics, public sentiment and, most importantly, the lived experiences of the people it is meant to support.

For Australians watching closely, staying informed and engaged will be key. Whether you’re currently on JobSeeker, working casually, or simply concerned about how the system works—your voice and your vote can influence the next chapter of welfare in Australia.

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