A report released by the Australian Council of Social Service (ACOSS) on Tuesday revealed almost two-thirds of surveyed welfare recipients were skipping meals and experiencing difficulty in accessing medication because they could not afford it against rising inflation.
ACOSS spokeswoman Charmaine Crowe said the current JobSeeker rate of $48 per day wasn't enough, with $73 the "bare minimum" to keep people out of poverty.
"It's incumbent on the federal government to address this issue as soon as possible, they must address it in the October budget," she said.
Independent senator David Pocock said the report made for "harrowing" reading.
"We're a wealthy country ... people who are in between jobs or studying should be able to live above the poverty line, to be actually able to afford to put good food on the table," he said.
Senator Pocock said the government could afford increasing payments if it axed the stage three income tax cuts and fossil fuel subsidies.
"It's about looking after Australians, this is about looking after people in our communities who are doing it tough," he said.
ANU student Sam Thomas said he was "humiliated' every time bills arrived, and was struggling to survive on $450 a fortnight, which included rent assistance.
"I've got to ask my flatmates or my landlord for an extension or ask my mum or a friend for help," the 21-year-old said.
"When I'm dealing with my landlord, I worry about being evicted."
The report also found more than half of recipients were taking fewer showers because of increased energy costs, and almost a third had energy bill debt.
Almost half were going to bed early to keep warm.
