In December 2023, the Economic Inclusion Advisory Committee Act 2023 (the Act) received Royal Assent, establishing the Economic Inclusion Advisory Committee. The Committee takes the place of the Interim Economic Inclusion Advisory Committee, which was established in November 2022.

The Committee provides non-binding advice on boosting economic inclusion and tackling disadvantage, including policy settings, systems and structures, and the adequacy, effectiveness and sustainability of income support payments. Its advice is to be delivered ahead of every federal budget.

The Committee’s 2024 report aims to assist the government in its ongoing efforts to improve support for vulnerable people in Australia and enable wider economic and social participation. The Committee recognises it is for the government to determine whether to accept the advice and note the government’s consideration and potential approval of the Committee’s recommendations must ensure the long-term sustainability of the social security system and minimise the impact on long-term debt.

Guided by its Terms of Reference and the Act, the Committee has provided 22 recommendations to inform the Commonwealth Government on how best to improve economic inclusion and create a more equal and prosperous nation. The Committee has regard to the fiscal implications of their recommendations, and the effects on workforce participation, relevant government policies, and the long-term sustainability of the social security system.

Key recommendations:

• Substantially increase JobSeeker and related working age payments, and improve the indexation arrangements for those payments.
• Increase the rate of Commonwealth Rent Assistance.
• Create a new employment services system to underpin the goal of full employment and ensure a more positive focus on supporting Australians seeking work.
• Implement a national early childhood development system that is available to every child, beginning with abolishing the Activity Test for the Child Care Subsidy to guarantee all children access to a minimum three days of high quality early childhood education and care (ECEC).