Raising Newstart payments by $75 a week could help boost the economy, according to a Deloitte report.

Deloitte economist Chris Richardson said the direct cost of an increase is around $3 billion dollars a year, which would flow back into the economy in the long term.

Cassandra Goldie, CEO of the Australian Council of Social Service, says Newstart payments are a national embarrassment, and unemployment payments have been kept low for too long.