Lismore’s Chamber of Commerce and Industry has become the first in Australia to endorse a campaign to raise the rate of Newstart and Youth Allowance and provide a big boost to the local economy.

At Wednesday night’s board meeting, the chamber unanimously voted to endorse the Australian Council of Social Service’s (ACOSS) Raise the Rate campaign.

Board member Ellen Kronen said a quarter of households in the Lismore LGA had a weekly income of under $650 per week however Newstart recipients were expected to survive on about half that.

According to the Department of Social Services, there were 2,377 people on Newstart and 585 people on Youth Allowance in the Lismore area in December last year, she said.

“[They] have to keep a roof over their heads, pay their bills, and put food on the table, with only $40 a day,” Ms Kronen said.

“It also makes looking for paid work – which requires transport, internet and phone access, interview clothes/haircut, and the funds to be able to study/train – very difficult.

“This causes a raft of issues not only for individuals, but it has a direct impact on the local business community who are also trying to survive, with many still recovering from the impacts of the 2017 flood.”

Ms Kronen said Deloitte Access Economics had found raising the rate of Newstart and similar payments would inject a much-needed financial boost to the local economy.

“Low-income earners are highly likely to spend any extra money they receive and this would offer an immediate benefit at the local level.

“Raising the rate would inject $4b into the Australian economy, around $60m to the Northern Rivers region, and a massive $11m into the Lismore economy alone - a boost that would most surely make a huge difference to individuals, business owners, and the overall well-being of the local community.

“We call on the Federal Government to listen to the community – to listen to those who are on Newstart or Youth Allowance, and the diverse range of charities, business groups, trade unions, health groups, and regional organisations that are calling for a raise – and immediately act to raise the rate of Newstart or Youth Allowance by at least $75 a week.”

Other national business organisations to advocate for an increase in Newstart include the Business Council of Australia, the Australian Industry Group, and the Council for Small Business. Lismore City Council voted to endorse the campaign in July.