When asked if he supported an increase to Newstart during a visit to Penguin, federal Treasurer Scott Morrison said: “I support getting Australians off welfare and into work and that’s what this government has done, that’s what’s happening right here in Penguin Composites, by creating jobs.”

The Newstart payment for single adult without children is currently $272.90 per week.

The Greens have proposed a $75 per week increase to Newstart while the Labor Party have promised to review the allowance if it wins government.

Australia Institute Tasmania director Leanne Minshull said an increase to Newstart would assist people to get back into the workforce sooner.

“It presumes that at some level, if a job seeker remains unemployed they are just not trying hard enough,” Ms Minshull said.

“The reality is remaining on Newstart for any length of time is a trap door into poverty.”

Ms Minshull said increasing the payments would also stimulate the local economy.

A poll commissioned by the Environmental Research Council last month found 78 per cent of Tasmanians supported an increase in Newstart payments.

Mr Morrison said the proportion of Australian earning wages below poverty line had been falling since the Coalition had been in government.

“The way you get control of your welfare bill in this country is you just get people into work, that’s the way you achieve it.

“And last year we had record growth, 412,000 jobs created across Australia, which has seen more people get into those jobs.”