Newstart Allowance Quick Facts 2

Newstart Allowance (NSA) – Payment Trends and Profile Report
June 2016

Contents

About Newstart Allowance 2

Newstart Allowance Quick Facts 2

Newstart Allowance Population – Time Series 2

Newstart Allowance Expenditure 3

Newstart Allowance by Age Group 3

Newstart Allowance by Gender 3

Newstart Allowance by Relationship Status 3

Newstart Allowance by Indigenous Indicator 4

Newstart Allowance by Rate of Payment 4

Newstart Allowance by Earnings 4

Newstart Allowance by Duration on Income Support 4

Newstart Allowance by Remoteness Area 5

Newstart Allowance by State 5

Newstart Allowance by Activity 6

Circumstances before receiving Newstart Allowance 6

Circumstances after receiving Newstart Allowance 6

Data Descriptions 7

Glossary 7

Further Information 8

About Newstart Allowance

Newstart Allowance is the primary income support payment for unemployed people aged 22 years or over but less than Age Pension age. Unless exempt from mutual obligation requirements, recipients must look for work or undertake other activities to improve their employment prospects (such as study or training).

Newstart Allowance Quick Facts

Recipients with a partial capacity to work increased by 6.4% from June 2015 to June 2016, these recipients now represent 23.1% of the NSA population.

Table 1: Newstart Allowance Quick Facts
Quick Facts / Jun-14 / Jun-15 / Jun-16 / Change Jun-15 to Jun-16 / Change Jun-14 to Jun-16
Total Population / 705,814 / 748,719 / 732,100 / -2.2% / 3.7%
Male / 374,530 / 398,635 / 382,005 / -4.2% / 2.0%
Female / 331,284 / 350,084 / 350,095 / 0.0% / 5.7%
Duration - Short-term / 221,974 / 214,596 / 198,444 / -7.5% / -10.6%
Duration - Long-term / 483,840 / 534,123 / 533,656 / -0.1% / 10.3%
Nil Earnings / 556,683 / 594,702 / 576,308 / -3.1% / 3.5%
Earnings / 149,131 / 154,017 / 155,792 / 1.2% / 4.5%
Partial Capacity / 144,136 / 158,820 / 168,951 / 6.4% / 17.2%
Principal Carer / 116,847 / 121,130 / 115,317 / -4.8% / -1.3%

Newstart Allowance Population – Time Series

The total Newstart population decreased by 2.2% compared to June 2015. Note: In January 2013, there was a large, one-off increase due to the cessation of the grandfathering provisions for Parenting Payment recipients who had been on the payment prior to 1 July 2006 and had a youngest child aged 6 years or over (for partnered) or 8 years (for single). Eligible recipients transferred to NSA.

Table 2: Newstart Allowance Time Series
Month and Year / Recipients
Jun-06 / 437,667
Jun-07 / 417,793
Jun-08 / 399,401
Jun-09 / 520,194
Jun-10 / 553,893
Jun-11 / 527,480
Jun-12 / 549,773
Jun-13 / 660,673
Jun-14 / 705,814
Jun-15 / 748,719
Jun-16 / 732,100

Newstart Allowance Expenditure

Expenditure on NSA has increased over time. This can be largely attributed to increases in payment rates due to regular indexation and higher recipient numbers as a result of changes to income support policy settings. The 2015-16 expenditure on NSA is $9.91 billion. Expenditure on NSA makes up approximately 0.6% of Gross Domestic Product (ABS National Accounts).

Table 3: Newstart Allowance Expenditure
Financial Year / Expenditure ($’000) / % of Gross Domestic Product
2011-12 / 6,600,470 / 0.4%
2012-13 / 7,492,413 / 0.5%
2013-14 / 8,813,881 / 0.6%
2014-15 / 9,535,789 / 0.6%
2015-16 / 9,910,000 / 0.6%

Newstart Allowance by Age Group

At June 2016, 20.5% of NSA recipients are aged under 30 years, while 33% are aged 50 and over. Recipients aged between 30 and 49 make up the highest proportion of all NSA recipients with 46.5%.

Table 4: Newstart Allowance by Age Group
Age Group / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Under 30 / 154,864 / 152,895 / 159,088 / 167,411 / 149,966
30-49 / 242,071 / 323,424 / 337,295 / 353,244 / 340,261
50+ / 152,838 / 184,354 / 209,431 / 228,064 / 241,873

Newstart Allowance by Gender

There are slightly more males than females on NSA, with 52.2% male and 47.8% female. There has been an increase in the proportion of NSA recipients who are female from 41.5% in 2012. This reflects the removal of Parenting Payment grandfathering in January 2013, the closure and phasing out of payments such as Wife Pension, Widow B Pension, Partner Allowance and Widow Allowance as well as increases to the Age Pension qualification age for women.

Table 5: Newstart Allowance by Gender
Gender / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Male / 321,739 / 354,038 / 374,530 / 398,635 / 382,005
Female / 228,034 / 306,635 / 331,284 / 350,084 / 350,095

Newstart Allowance by Relationship Status

At June 2016, 77% of NSA recipients were single, the proportion has remained stable over time.

Table 6: Newstart Allowance by Relationship Status
Relationship Status / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Not Partnered / 415,250 / 503,280 / 537,942 / 576,412 / 564,352
Partnered / 134,523 / 157,393 / 167,872 / 172,307 / 167,784

Newstart Allowance by Indigenous Indicator

The Indigenous proportion of the total Newstart population has remained fairly stable over time. At June 2016 the Indigenous proportion was 9.4%. Indigenous recipients include only those who have voluntarily identified as Indigenous.

Table 7: Newstart Allowance by Indigenous Indicator
Indigenous Indicator / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Not Identified as Indigenous / 500,197 / 603,029 / 643,734 / 678,588 / 663,599
Indigenous / 49,576 / 57,644 / 62,080 / 70,131 / 68,501
Percentage / 9.0% / 8.7% / 8.8% / 9.4% / 9.4%

Newstart Allowance by Rate of Payment

The proportion of recipients on full-rate is comparable with June 2015 with a small decrease from 75.6% at June 2015 to 75% at June 2016. 'Other' includes those recipients who were yet to be paid and accounts for around 1.2% of the total population.

Table 8: Newstart Allowance by Rate of Payment
Rate of Payment / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Full Rate / 419,219 / 484,591 / 527,335 / 565,989 / 549,142
Part Rate / 122,660 / 168,038 / 168,771 / 174,375 / 174,106
Other Rate / 7,894 / 8,044 / 9,708 / 8,355 / 8,852

Newstart Allowance by Earnings

The proportion of recipients reporting earnings has remained relatively stable over time. 21.3% of NSA recipients had earnings at June 2016, up from 20.6% at June 2015.

Table 9: Newstart Allowance by Earnings
Reporting Earnings / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Nil Earnings / 449,688 / 522,826 / 556,683 / 594,702 / 576,308
Had Earnings / 100,085 / 137,847 / 149,131 / 154,017 / 155,792

Newstart Allowance by Duration on Income Support

At June 2016, 72.9% of recipients were classified as long-term (1 year or more), the proportion has increased from 71.3% at June 2015. Duration refers to duration on income support and may not reflect duration on current payment type.

Table 10: Newstart Allowance by Duration on Income Support
Duration / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Less than 1 year / 209,322 / 224,592 / 221,974 / 214,596 / 198,444
1 year plus / 340,451 / 436,081 / 483,840 / 534,123 / 533,656

Newstart Allowance by Remoteness Area

The majority of NSA recipients reside in major cities (62%). A further 34% reside in regional areas (outer and inner), while the remaining recipients reside in remote or very remote locations. By comparison, the general working age population in Australia has a higher proportion residing in major cities (71%) and lower proportion living in regional areas (27%) (ABS Census 2011).

Table 11: Newstart Allowance by Remoteness Area
Remoteness Area / Jun-16 / Percentage
Inner Regional Australia / 161,144 / 22.0%
Major Cities of Australia / 452,669 / 61.8%
Outer Regional Australia / 87,424 / 11.9%
Remote Australia / 13,268 / 1.8%
Very Remote Australia / 15,261 / 2.1%
Not Assigned to a Remoteness Area / 2,334 / 0.3%

Newstart Allowance by State

The highest proportion of recipients were located in New South Wales at 28.6% followed by Victoria at 23.7% and 22.6% in Queensland. This aligns with the general working age population in Australia.

Table 12: Newstart Allowance by State
State / Jun-16
New South Wales / 209,024
Victoria / 173,358
Queensland / 165,411
South Australia / 67,121
Western Australia / 76,766
Tasmania / 21,584
Northern Territory / 12,778
Australian Capital Territory / 5,894
Unknown / 164

Newstart Allowance by Activity

At June 2016, 59.6% of recipients had job search as their main activity, an increase of 7.1% from June 2015 reflecting the commencement of jobactive in July 2015 which has a stronger focus on job search. A further 9.6% were undertaking other approved activities to improve their employment prospects (may include education/training) and 19.8% had a temporary incapacity or other exemption (for example, due to major personal crisis).

Table 13: Newstart Allowance by Activity
Activity Type / Jun-12 / Jun-13 / Jun-14 / Jun-15 / Jun-16
Incapacity exemption / 59,991 / 62,738 / 69,138 / 63,494 / 81,738
Job search / 298,502 / 357,431 / 363,224 / 392,726 / 436,427
Other approved activities / 113,751 / 126,059 / 158,327 / 168,699 / 69,977
Other exemption / 43,945 / 55,137 / 53,260 / 58,384 / 63,237
Voluntary/part-time work / 33,584 / 59,308 / 61,865 / 65,416 / 80,721

Circumstances before receiving Newstart Allowance

Comparing June 2015 to June 2016, the majority of recipients moving onto NSA did not transfer from another income support payment. The largest numbers of recipients transferring from another payment came from Parenting Payment Single (7.3%) and Youth Allowance (other) (4.8%).

Table 14: Circumstances before receiving Newstart Allowance
Circumstance / Recipients / Percentage
Not Receiving Income Support / 191,680 / 74.4%
Working Age Payment / 38,096 / 14.8%
Student Payment / 15,090 / 5.9%
Other Income Support Payment / 12,628 / 4.9%

Circumstances after receiving Newstart Allowance

Comparing June 2015 to June 2016, the majority of recipients who left NSA did not transfer to another income support payment. Of those who did transfer to other payments, most transferred to pension payments, such as Age Pension (5.5%), Carer Payment (4.2%) and Disability Support Pension (3.4%).

Table 15: Circumstances after receiving Newstart Allowance
Circumstance / Recipients / Percentage
Not Receiving Income Support / 212,320 / 77.5%
Working Age Payment / 14,339 / 5.2%
Student Payment / 11,514 / 4.2%
Other Income Support Payment / 35,940 / 13.1%

Data Descriptions

Newstart Allowance: Newstart Allowance is the primary income support payment for unemployed people aged 22 years or over but less than Age Pension age. Unless exempt from mutual obligation requirements, recipients must look for work or undertake other activities to improve their employment prospects (such as study or training).

Recipient Numbers: Recipients of Newstart Allowance who are determined to be current (i.e. entitled to be paid) on the Centrelink payment system and are not in receipt of CDEP Participation Supplement or a zero rate of payment.

Note: Recipient numbers are point-in-time as at the end of the month, using the definition above, these numbers differ from the data in the Labour Market and Related Payments publication, which are averaged over the month.

Report Details: Payment trends and profiles report - June 2016 - Produced by the Department of Social Services.

Licence: Creative Commons Attribution 3.0 Australia

Source: Department of Human Services Administrative data (DSS Extracts)

Data Date: Data as at the 24th of June 2016.

Australian National Accounts: National Income, Expenditure and Product: Table 34 Time Series Spreadsheets (cat. no. 5206.0).

Australian Bureau of Statistics Census 2011: Australian Bureau of Statistics, 2011 Census of Population and Housing, Table Builder, RA by AGE5P - Age in Five Year Groups.

Glossary

Activity: The main activity undertaken by a recipient with participation requirements.

Age Group: The age group of the recipient.

CDEP: CDEP refers to Community Development Employment Projects Scheme. This Scheme and payment of the CDEP Participation Supplement ceased on 30 June 2015.

Circumstances after NSA: This data compares two points in time, one year apart. 'Not Receiving Income Support' describes those who were in receipt of NSA at the first point in time, who were not receiving an income support payment at the second point in time. This data does not take into account Family Tax Benefit.

Circumstances before NSA: This data compares two points in time, one year apart. 'Not Receiving Income Support' describes those who were not in receipt of an income support payment at the first point in time, who were receiving NSA at the second point in time. This data does not take into account Family Tax Benefit.

Duration: Duration refers to duration on Income Support and may not reflect duration on current payment type.

Earnings: Earnings refers to employment earnings reported in the last fortnight of the reported period.

Expenditure: Expenditure amount, as reported in the Department's Annual Report. '% of GDP' is the expenditure on the payment as a percentage of Australia's Gross Domestic Product (ABS data - see data source above).

Indigenous: Indigenous recipients include only those who have voluntarily identified as Indigenous. This data may therefore represent an undercount.

Partial Capacity to Work: Activity tested recipients who have been assessed in the last two years as having a capacity to work of under 30 hours per week, due to an ongoing physical, intellectual or psychiatric impairment.

Principal carer: Recipients who have principal caring responsibilities for a dependent child(ren).

Remoteness Area: Remoteness Areas are based on the recipient's geo-coded address against the Australian Statistical Geography Standard (ASGS) 2011.

Rate: The rate of the recipients payment ('other' include those recipients who, as at the data date, were yet to be paid).

Relationship Status: Partnered includes recipients who are married, defacto or registered.

State: The State or Territory recorded in the recipient's address.

Further Information

The Department of Social Services publishes statistics about the various pensions, benefits and family payments which the Department administers, on a quarterly basis on the Australian Government’s centralised data publishing site, data.gov.au (http://www.data.gov.au/organization/about/department-of-social-services). A statistical overview is published on an annual basis on the Department’s website, DSS - Statistical Paper Series (http://www.dss.gov.au/about-the-department/publications-articles/research-publications/statistical-paper-series).

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