Labor's national conference will be asked to commit to a rise in the dole.
Darcy Byrne, the Labor mayor of Sydney's Inner West Council, is lobbying conference delegates ahead of the July meeting to enshrine a promise to raise the level of Newstart payments in the first term of a Labor federal government.
"For a quarter of a century the lowest paid Australians have gone without any increase in income," Mr Byrne said on Friday.
"Giving the poorest Australians a decent standard of living is a moral issue and quite obviously should be a Labor cause."
No consensus has been reached on what the level should be lifted to.
Newstart pays a single person with no children $545.80 a fortnight, or $39 a day. For a couple, it equates to $35.20 a day or $17.60 a person.
A rise in the allowance has been backed by the Business Councils of Australia, prominent economist Chris Richardson and the Greens.
Labor has only committed to a "root and branch" review, however leader Bill Shorten had questioned how anyone could live on such a low payment.
"Failure to increase the meagre income of unemployed Australians in the first term of a Labor government would risk this national outrage continuing indefinitely," Mr Byrne said.
The government says Newstart is not designed to be a permanent source of income.
