Yahoo Finance ‘Low blow’: $100 JobSeeker cut condemned as it passes Parliament
The latest extension and reduction of the Coronavirus Supplement has been slammed by a major social services group as a “low blow”.
Last night, legislation for the JobSeeker boost to extend to 31 March 2021 officially passed Parliament. Under the laws, the boost will continue, but at a reduced rate of $150 a fortnight.
The current Supplement rate is $250 a fortnight, which was brought down from the original $550 in September, and is set to drop again to the new rate on 1 January.
But the cut was slammed by the CEO of Australian Council of Social Services Cassandra Goldie, who described the cuts as making life harder for Australians on income support just before Christmas.
“As one of the last acts of the 2020 Parliament, this is a low blow – cutting even further the incomes of people with the least – as politicians head home to spend time with family and friends,” Goldie said.
Also read: JobSeeker boost extended until March at reduced rate
Also read: ‘Inadequate’: The major problem with JobSeeker’s $300 cut
Those receiving welfare support will be left with $50 a day to cover housing, food, transport at bills during a time of high unemployment, currently at 7 per cent.
“Millions are facing agonising decisions like whether they will be able to afford to stay in their homes after Christmas, and which essential items, like food, bills or medicine, they will have to cut back on even further,” she said.
“This is not the way to restore economic confidence in order for the country to recover from recession. Both people and the economy need security in order to be able to rebuild.”
Goldie also repeated calls to raise the base rate of JobSeeker, which is currently $565.70 a fortnight or around $40 a day.
JobSeeker base rate inadequate: Senate inquiry
The comments come as an interim report from a Senate inquiry on Covid-19 makes six recommendations to the Government, including a permanent rise to the base rate of JobSeeker.
“It has been widely acknowledged for years, by business and community stakeholders alike that the permanent rate of JobSeeker at $40 a day is totally inadequate, often forcing recipients to live well below the poverty line.
“The committee agrees that the original rate of JobSeeker is inadequate,” the interim report stated.
“The committee is concerned that the further reductions in the supplement just after Christmas will plunge almost two million recipients of the supplement into greater financial hardship at a time when the economy needs sustained fiscal stimulus to protect jobs and businesses.”
“The committee urges the government to permanently increase the rate of JobSeeker from its current rate of just $40 a day at the earliest opportunity— either in the upcoming Mid-Year Economic and Fiscal Outlook or in the 2021–22 Federal Budget.”
Any further cuts to supplement should also be monitored, the report added.
“The committee recommends that the government monitors the economic impact of reducing the Coronavirus Supplement and reports back to the Senate with any data on the impact of the reductions.”
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