Helen Haines has "deep concerns" about the effectiveness of Newstart having a $278 weekly allowance.
The adequacy of that amount will be examined as part of a Parliamentary Senate inquiry, due to report its findings in March next year.
The Indi MP has reiterated her pre-election call to look at a $75 increase to Newstart, saying it is a serious problem in regional areas because there are more people who receive the welfare allowance - 6.6 per cent, compared to 4.9 per cent in major cities.
"Raising the rate will deliver real help to people trying to find jobs in Indi and other regional electorates," Dr Haines said.
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"Research shows that raising the rate will have a positive effect.
"It all flows back. People in our communities spend their money locally.
"Those few extra dollars that should go to Newstart recipients will then be spent in our communities, which in turn support our small businesses and jobs.
"But the current rate of payment is so low that many people wanting jobs in our communities are falling into poverty."
Nationals deputy leader Bridget McKenzie this week conceded Newstart was "very hard" to live on, but said getting people off the allowance and into a job was the government's focus.
"It's not meant to be a lifestyle choice... it's not meant to be something you're on for the long term," she said.
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