The May federal budget will aim to “support the most vulnerable Australians”, the finance minister, Katy Gallagher has said, raising expectations the Albanese government will do more to help single parents amid calls for payments to be lifted.
Two advisory groups have recommended that the single parent payment be extended through eligibility changes. The women’s economic equality taskforce and the economic inclusion advisory panel recommend raising the children’s cutoff age above eight years old – the point at which single parents are shifted to the less generous jobseeker payment.
The government is also considering a recommendation by the women’s taskforce to abolish the controversial ParentsNext program, a call supported by a Labor-led parliamentary inquiry that wants to replace it with a new parental support scheme.
In early March, Sam Mostyn, the chair of the women’s taskforce, indicated that raising the eligibility for the single parent payment was one of its primary recommendations.
She told the National Press Club it was “the smartest, most appropriate thing to do right now for this country and for those people who are just trapped in falling into poverty”.
Under the current scheme, single parents, most of whom are women, receive about $961 a fortnight, but are shifted to jobseeker when their child turns eight, receiving about $176 less a fortnight.
Labor MPs regard raising the eligibility age as a strong likelihood for the budget, although the fate of ParentsNext is unclear, because there are options short of scrapping the welfare scheme, such as removing the compulsory element and penalties for non-attendance.
Gallagher on Thursday said the recommendations were currently before the expenditure review committee.
“We have a couple of important reports provided to government that go to those issues about payments and support, particularly for single parents, mums primarily,” she told reporters in Canberra.
“We’re working through those in the final stages of budget decisions.
“[The treasurer] Jim [Chalmers] and I have made it clear that … we see the budget as an opportunity to look at ways to support the most vulnerable Australians.”
On Tuesday Gallagher said that “obviously vulnerable households are front of mind for a Labor government”.
Terese Edwards, the chief executive of Single Mothers Australia and a member of the women’s economic equality taskforce, told Guardian Australia it was unfair that the welfare system classified single parents as “not having a job” when “being a single mum is already a full-time job”.
Edwards said the current system “ignored” complexities, including that single parents are more likely to have experienced gendered violence, or be looking after children with disability.
She said single parents “should be able to celebrate their child’s eighth birthday” without fear of losing payments. Raising payments “will stop them going back to violence”.
“I just feel it’s a case of – if not now, then when?” she said. “All the stars are aligned. It’s time we should be getting some sunshine.”
In 2013, the Gillard government slashed the children’s age for single parent payments from 16 to eight, saving the government $728m over four years, in a move billed as a push to encourage parents back into the workforce.
In March the independent MPs Zoe Daniel, Kylea Tink, Monique Ryan and Zali Steggall joined anti-poverty campaigners to call for the single parent payment to be restored for parents with children aged up to 16.
