The Deloitte Access Economics report, commissioned by the Australian Council of Social Services, analysed the impact of raising a range of benefit rates.

“The proposed policy change is a ‘catch up increase’ of $75 a week – an extra $10.71 a day that would be received by around 770,000 Australians receiving the ‘single rate’ of one of these payments,” the report said.

“Our report finds that the introduction of such a policy would have a range of ‘prosperity effects’, boosting the size of the economy and the number of people employed in Australia.”

TasCOSS chief executive Kym Goodes said the report showed the need for an increase in payments to address inequality.

“The report estimates that in Launceston alone, raising Newstart and Youth Allowance by just $75 per week would result in a $16 million boost to the area’s economy and the positive flow on impact including more jobs to produce increased goods and services,” Ms Goodes said.

“Overall, Tasmania would see a $96 million increase in disposable income.

“The north of Tasmania has an extremely high youth unemployment rate. Good governments support our young people to have a go, not lock them into a daily struggle to meet their most basic needs.”

Ms Goodes said the report highlighted the potential of job seekers to participate and be able to afford the basics needed to live and also afford to look for work.

“Tasmania has high levels of inequality,” she said. “In this period of economic growth Tasmania needs to reduce inequality to ensure sustainable growth.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey supported an increase in Newstart and other payments.

“The last thing we want in our country is growing poverty,” Mr Bailey said.

“I do think the payments now are too low and the feedback I get from the community is that it needs to be reviewed.

“Bu we need to know how we are going to pay for any increase and a discussion around our GST.”

Mr Bailey said business did not have a view on how much the level of payments should be increased, but stressed any increase should not come from borrowing to pay for the cost.