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New South Wales’ total disposable income would increase by $905 million if the Federal Government raised Newstart, Youth Allowance and related payments by $75 per week.

Deloitte Access Economics has today released a report commissioned by ACOSS, with the support of state and territory Councils of Social Service, showing that raising unemployment and student payments would deliver 12,000 new jobs across the country.

Dr Cassandra Goldie, CEO of ACOSS said regional and rural Australia stand to benefit most from this reform.

“This report confirms what we have always known, that rural and regional areas in NSW will be the largest beneficiaries of this policy, which lift the incomes of people most in need.

“People looking for paid work are really struggling to afford basic essentials like a roof over their head and three meals a day on Newstart Allowance, which is less than $40 per day.

“Increasing Newstart will boost spending on locally produced goods and services. It will mean higher takings in local cash registers, strengthening local wages and jobs. Everyone will benefit.”

More than two thirds of people support an increase to Newstart, as do all the leading charities, community organisations, the Committee for Economic Development, Deloitte Access Economics, KPMG, Australian Industry Group, and the Business Council of Australia. Benjamin Law, Jane Caro, John Howard, Ken Henry all back an increase, as do the Greens, Senators Tim Storer and Derryn Hinch, and the ACT Chief Minister Andrew Barr.

NCOSS Interim CEO Kathy Chapman said Newstart had not increased in real terms since 1994. “The payment is now so low people are struggling to feed themselves,” she said.

“We call on all Federal Politicians to do what is right for equality and our regional economies, and increase Newstart and Youth Allowance by $75 per week as a matter of urgency.

“Not only is it the right thing to do for social justice, it will provide the much-needed economic boost in rural and regional NSW.”

Read the full report.

Top 20 LGAs to benefit (total disposable income), $million, 2018/19


Local government area

Disposable income


Economic output

Fairfield (C)




Canterbury-Bankstown (A)




Central Coast (C) (NSW)




Blacktown (C)




Liverpool (C)




Wollongong (C)




Cumberland (A)




Newcastle (C)




Lake Macquarie (C)




Campbelltown (C) (NSW)




Parramatta (C)




Penrith (C)




Sydney (C)




Mid-Coast (A)




Inner West (A)




Shoalhaven (C)




Tweed (A)




Coffs Harbour (C)




Port Macquarie-Hastings (A)




Georges River (A)





Disposable income: refers to the increase in after-tax income. Deloitte has modelled this across all people in each state/LGA as well as the aggregate of this increase (obviously, though, only single people on Newstart, YA and other allowances will receive the $75 increase).

Consumption: Refers to the level of spending where the person lives. This is why the increase in consumption per person and across the state/LGA differs from disposable income in that people often consume goods in another area e.g. spending on electricity will likely go to another area (wherever the head office for the energy company is) as opposed to the person’s LGA, unlike spending at the local store which will increase consumption in their LGA.

Economic output: Refers to the impact on local production of goods and services e.g. if money is spent locally on locally produced goods/services, then economic output will be higher for that LGA. In some areas, like remote areas, goods are produced elsewhere, so increased spending on them will generate a higher economic output elsewhere and the economic output for the area in question will not be as high as if the goods were produced locally.