Lismore Chamber of Commerce member Ellen Kronen’s personal experience of being on Newstart gave her the passion to get the Chamber of Commerce to back the national campaign the raise the rate of Newstart and Youth Allowance.

 “I was made redundant after 20 years with the same employer,” Ellen said.

“I had a plan to start my own business but then I broke my wrist. 

“Then I ran out of savings and forced to go onto Newstart.”

Ellen is part of a diverse alliance of businesses, charities and affected citizens – as well as Lismore City Council - who came together this week to call for the federal government to immediately raise the rate of Newstart and Youth Allowance.

In Lismore, there are 2,223 people on Newstart and 617 people on Youth Allowance. 

Ellen said a $75 a week raise to allowances would inject an extra $11.11 million into the Lismore economy.

“It means jobs and a happier life for people and the business community,” she said.

“I received $537 a fortnight on Newstart and was lucky my father supported me, or I probably would have been homeless. 

“At the time, I was trying to pay the mortgage on a house but it was hard.

“I couldn’t get access to my superannuation so I sold the house and got rid of my mortgage.

“It’s depressing and it changed my attitude to money, living on less than $40 a day.

Now, Ellen has a casual job which means more security for her.

“Now I’m not so worried about how to pay the rent,” she said.

 “I’m still careful with my money after trying to scrape by on Newstart, but I know spending my money helps local business. 

“Now I shop locally to help Lismore. You can find everything you need here. 

Ageing demographic

Shelley Hayes is 64, and also on Newstart.

She said she had been working as a teacher and then had burnout and depression and was hospitalised and lost her job. 

“I was forced to go onto Newstart in 2017 and wouldn’t have survived without being able to access my superannuation,” she said. 

“I’m over 60 so was allowed to access it, but younger people don’t have the opportunity to do that.

“There are lots of single older women like me in the same position and it’s hard. 

“Lots of them are couch surfing or living in their cars. As you get older there’s less opportunity for work and employers need to recognise the ageing demographic.

“We need to raise the rate enough to live on.

Dumpster diving

Kashmir Miller, 19, is on youth allowance and received $300 a fortnight to live on. 

She’s studying environmental science at Southern Cross University and works part time.

“It’s stressful studying and trying to work too,” she said. “It takes a toll on my emotional and mental wellbeing. 

“I always prioritise what I buy – there’s no luxuries and I don’t eat meat so that saves money - and I dumpster dive. 

“It’s always in the back of my mind how I can afford the next bill.

“It is time to raise the rate and start treating students fairly and investing in the future of young ambitious Australians.”

"You cannot get by on $40 a day"

Australian Council of Social Services (ACOSS) Raise the Rate campaign coordinator Pas Forgione said Lismore has shown strong support for the campaign. 

“Lismore City Council and the Chamber of Commerce are behind it, and we need to get more local politicians like Kevin Hogan to listen,” he said.

“The local community has come together with a clear message: you cannot get by on $40 a day.

“In 20 years, there’s been no real change in the amount of money for Newstart and people are struggling. 

“Once people pay the rent there’s little left to live on.”

Rental unaffordability

Currently, anyone wishing to rent a property in Lismore can expect to pay the median weekly rent of $338 for a house or $248 for a unit.

That would mean Newstart recipients would not be able to afford to rent a house on their own because they'd be out of pocket by $138.

And if they were renting a unit, they'd only have $32 after their rent was paid - leaving them with $4.57 a day to live off.

“We can do better,” Pas said. “It’s not acceptable that unemployed people have to skip meals and can’t buy medicine because of a lack of money.”

Psychological stress

Social Futures senior program manager Cathy Severnty said her organisation worked with hundreds of people who were struggling and suffering psychological stress as a result.

“It’s harmful to constantly have to ask people for help with food vouchers,” she said.

“One woman we are working with is doing the housework and maintenance for cheaper rent. 

“The low income of Newstart makes people vulnerable to exploitation - and Youth Allowance is less than Newstart. 

“If people had more money, they could make different choices.

“Raising the rate will not only help people to better afford essential items, it will reduce pressure on charity organisations while also increasing economic benefits for local communities - improving people’s wellbeing, security and health.”

Lismore Mayor Isaac Smith said Lismore City Council is glad to support the campaign as “it’s good for the community”.

"Lismore City Council voted unanimously to join the campaign, calling for the rate of Newstart and Youth Allowance to be raised. 

“The rate hasn't been raised in 25 years and is so low that it traps people in the cycle of poverty, where they’re unable to meet their basic costs of living.

“With rising rates of homelessness, compounded by our local rental shortages, the impacts are far reaching across our community.

Both Lismore City Council and Lismore Chamber of Commerce recently made submissions to the Senate inquiry on Newstart and related payments, along with Shelly and Kashmir. 

The Senate inquiry finished collecting submissions this Monday and will shortly commence hearings.