Welfare groups have blasted the government for leaving the Newstart rate untouched in Tuesday's federal budget, as the government focuses instead on cracking down on over payments.
Critics are furious the "unnecessarily cruel" unemployment allowance has not lifted in real terms for more than 25 years.
Cassandra Goldie, from the Australian Council of Social Services, is urging parliament to block income tax cuts unless the jobless payment is raised.
"We urge the parliament to block any attempt to rush through the tax cuts in the final days before we go to an election, and instead commit to urgently increasing Newstart and Youth Allowance," she said.
"The government confirms its vision for our country is cuts, tax cuts for people who don’t need them, guaranteeing more cuts in future to essential services and our safety net for people who rely on them."
Liberal senator Arthur Sinodinos has broken with government ranks to join calls for an increase.
Newstart recipients are given $538.80 per fortnight, while aged pensioners take home $834.40.
$2.1 billion saving
Welfare recipients will soon be forced to automatically report their employment incomes, saving the public billions of dollars.
In the budget's single biggest savings measure, the government expects to bank $2.1 billion over five years by "simplifying and automating" the social security reporting system.
From July 1, people who receive Centrelink payments and are also employed will automatically input their fortnightly income, rather than calculating and reporting their earnings.
Government officials expect the measure will "greatly reduce" the likelihood of welfare recipients being overpaid, and subsequently being chased for the money.
Another major savings measure is expected to reap $78 million over four years by "better targeting" employment support for refugees.
Newly-arrived refugees will only be required to enter into employment services once they have been receiving income support for 12 months, rather than the current requirement of six months.
This measure is supposed to allow refugees to focus on settlement and language services during their first year in Australia.
Cashless welfare card trials are also being extended for another year to June 2021, at a cost of almost $129 million.
The budget locks in one-off energy assistance payments for pension and welfare recipients of $75 for singles and $125 for couples, to help pay for power bills.
Treasurer Josh Frydenberg has delivered his first federal budget. Source: AAP
