Australian Politics Forum

‘Nobody wants to live like that’: Dick Smith weighs in on Newstart

The New Daily The New Daily

Entrepreneur Dick Smith has joined the growing clamour for an increase to Newstart, urging the government to stop “dragging its heels”.

Mr Smith, who is one of Australia’s richest men, used an opinion piece in Wednesday’s Australian newspaper to reveal he was among those who backed a rise in the dole.

“The Prime Minister likes to talk about ‘having a go to get a go’, but I wonder if he really understands the great difficulty thousands of Australians have in finding a job,” he wrote.

Mr Smith said Newstart, which is paid at about $40 a day, and has not risen in real terms since 1994, was “not enough to feed and house a person, let alone to look presentable for job interviews or pay for the bus ticket or fuel to get to them”.

“I’m told that people have to skip meals, sleep rough, wear worn, old clothes – nobody wants to live like that, and they shouldn’t have to in a country such as Australia,” he said.

Mr Smith joins a sometimes unlikely alliance of support for a boost to Newstart.

The Business Council of Australia, the Country Women’s Association, the ACTU and the Australian Medical Association have all called for its increase – as have former prime minister John Howard, former Nationals leader Barnaby Joyce and independent MP Bob Katter.

The idea also has the backing of the Greens, Labor and several crossbench MPs, but has been repeatedly ruled out by the government.

“I’m not going to lead people on about this. You ask me ‘Are we increasing Newstart?’ Well the answer is ‘No, we are not’,” Prime Minister Scott Morrison said last week.

“They believe the best form of welfare is a job and they believe that our welfare system should work as much for taxpayers as it does for those who benefit from it.”

But Mr Smith said the Newstart freeze had gone on far too long.

“Amazingly, half of those on Newstart are over 45. Many have decades of experience but get rejection after rejection in the modern jobs market,” he said.

In July, The New Daily revealed that people over 55 made up the largest group of Newstart recipients.

“Then there are young people who can’t get a go because they don’t have much experience and the low-skilled jobs are drying up as automation takes hold,” Mr Smith wrote.

“What they have in common is that they know there are more people looking for jobs than jobs available. When the government tells them the best form of welfare is a job, I bet most agree and say: ‘I know, that’s what I’m out there trying to get’.”

Mr Smith is a millionaire and philanthropist who revealed in July that he had received about $500,000 in franking credits 2016-17, and a further $250,000 in 2017-18.

“I can’t stop it. I think it’s outrageous for wealthy people to be getting money from the government,” he said at the time.

In Wednesday’s article, he said that raising Newstart by the projected $75 a week would cost $3 billion a year – less than a third of the cost of the government’s tax cuts for high-income earners.

“In fact, wealthy people like me could easily pay additional tax to cover the $3 billion required,” he said.

“I sincerely believe in the need to increase Newstart but the government is still dragging its heels … An increase isn’t just urgent, it’s overdue.

The low dole money is there to
scare the hell out of people so
they become obedient workers
who are eager to bend over
and take it from the boss.

The amount of time, effort, passion and commitment white knight has put into this campaign for a few extra meagre dollars proves the point

" don't spend significant time on insignificant things"

White knight could have spent that time building a business and he would be crushing it.

Every second he spends feeling butt hurt and sad is an " opportunity cost"

He has to ask himself "what else ?."

How could he spend these hours productively instead of ruminating on the butthurtedness of being on new start

aquascoot wrote on Aug 8^th, 2019 at 7:50pm:

White Knight is a hero of the most vulnerable people in our society.
He deserves a Knighthood.

Nooooooo.

The last thing the people at the bottom of the hierachy need is a hero who majors in minor things

aquascoot wrote on Aug 8^th, 2019 at 7:56pm:

Nooooooo.

The last thing the people at the bottom of the hierachy need is a hero who majors in minor things

Sir White Knight

get used to it.

Newstart needs to be increased. $75 a week represents the $3 a week increases that should have been given since 1994. When it was increased in 1994, that increase was $5 a week, when $5 bought twice as much as it did now.

More jobs are needed. Two million full time jobs are needed in Australia, right now.

Casualisation is out of control. Job security is being eroded.

The wages of workers are stagnant. Wage theft is rampant and it takes many forms - underpaying the hourly rate, not paying penalty rates when required by law, workers forced to work unpaid overtime.

The middle class is being hollowed out.

Everywhere you look, there are problems for workers, both employed and the jobless.

aquascoot wrote on Aug 8^th, 2019 at 7:56pm:

Nooooooo.

The last thing the people at the bottom of the hierachy need is a hero who majors in minor things

Gotta start somewhere - there are no heroes upstairs... just parasites...

But it doesn't add up because if Newstart was so crook then the dole bludgers would jump at getting a job paying more - but they prefer to stay on the dole.

So ScoMo is right on the ball.

Then there is always UBER who will hire you a car to go to work and make thousands.