ACOSS responded today to the RBAs decision to increase its cash rate target by 0.25%.
The Bank estimates that if the war persists, unemployment could rise to 5.1% – meaning around 100,000 more people are unemployed.
Private sector economists warn that conflict in the Middle East and rising interest rates could lift unemployment to between 5% and 7%, meaning up to 400,000 more people out of paid work.
"In response to another interest rate rise that will increase unemployment, the Government must urgently lift the $409 per week JobSeeker Payment," said ACOSS CEO Cassandra Goldie.
"In the Budget next week the Government must avoid across-the-board tax cuts or subsidies – which would make little or no difference for those most in need of cost-of-living support and fuel inflation.
"People on low incomes are already under pressure from rising prices, and that pressure is only going to worsen in the months ahead," Dr Goldie said.
"If on top of this people lose their jobs, or can't find one when they're already unemployed, that would be a devastating blow.
''The RBA and governments must work together to contain inflation while keeping unemployment low and supporting people without paid work.
"The RBA has followed what it calls a 'narrow path' to keep unemployment low while containing inflation. It's vital to stick with that strategy and avoid excessive interest rate hikes that put jobs at risk," Dr Goldie said.
For its part, the Government must:
Lift Jobseeker Payment above the pitifully low $409pw (just 42% of the minimum wage) and fix the failing employment services system;
Avoid across-the-board tax cuts or subsidies that add to inflation;
Tackle inflation directly by capping domestic gas prices, imposing a 25% tax on gas exports, and curbing excessive rent increases and out of pocket costs for essential health and community services;
Raise the revenue needed to fund essential services from those with the ability to pay.
