Planned cuts to social security payments could see the economy lose $31.3 billion and lead to the loss of 145,000 full-time jobs.
Cuts to JobSeeker and related payments will see the economy lose $31.3 billion and 145,000 full-time jobs over the next two years, a report has found.
The old Newstart jobless payment rate was almost doubled when the federal government brought in the temporary coronavirus supplement in March and the name was changed to JobSeeker.The Morrison government is cutting the coronavirus supplement on 25 September, reducing the JobSeeker payment by $300 per fortnight.
If the cuts proceed as scheduled the economy would lose $31.3 billion, an average of 145,000 full-time equivalent jobs would be lost in 2020/21 and 2021/22 and regional communities would be hit the hardest, the report found.ACOSS CEO Cassandra Goldie urged the government to extend the existing coronavirus supplement and legislate a permanent JobSeeker rate that allowed people to cover basic living costs.
A security guard looks on as people are seen in long queue outside a Centrelink office in Abbotsford, Melbourne, Monday, 23 March, 2020.Deloitte Access Economics Partner Nicki Hutley said every dollar the government invested in JobSeeker generated a significant economic return.
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