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Briefing paper

Federal budget 2014-15 fact sheet 1: a planned crisis

21 Aug 2014

Under proposed budget changes unemployed people under 30 years of age will lose income support for six months of the year.

Who will this affect?

This will affect people aged 18-29 years who are not enrolled in education or training and who are not in work. It will also affect people in casual or part-time work who don’t earn enough to move off Newstart Allowance. It is estimated that this will affect 60% of Newstart recipients who are under 30 years of age. It is planned to phase this in from July 2015.

How will Tasmania be affected? 

TasCOSS estimates that 12,759 suspensions will be placed on Tasmanian jobseekers in the next four years.

Individuals affected by the suspension will lose half of their annual income ($10,764 if aged 18 to 20, $13,273 if over 21). They will also lose supplementary benefits such as Rent Assistance.

The Department of Social Security (DSS) has budgeted for extra assistance for emergency relief services to respond to the crisis that may result from this measure. Using this budget as a guide, TasCOSS estimates that Tasmania will see around 16,500 extra requests for assistance at Tasmanian emergency relief services over the next four years.

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