Should the JobSeeker unemployment benefits revert to the Newstart allowance?
Video clip at right: On May 10, 2020, Sky News reported that the federal government may begin winding back the JobSeeker and JobKeeper subsidies from July
Introduction to the media issue
What they said...'If it wasn't enough to live on two months ago, when these changes were made, why will it be enough to live on in six months' time?'
Opposition leader, Anthony Albanese, commenting on the inadequacy of the former level of unemployment benefits
'Temporary and targeted, the new spending measures were not designed to go forever but to build a bridge to the recovery phase'
Federal Treasurer, Josh Frydenberg, explaining why JobKeeper and JobSeeker are not intended to be permanent
The issue at a glance
On March 22, 2020, the Morrison government announced a number of economic supports to assist those who lost work through the restrictions imposed in order to control the spread of COVID19.
One of these was the introduction of the Coronavirus Supplement which is paid at the rate of $550 a fortnight. This payment is to those on unemployment benefits, now known as JobSeeker payments (formerly called Newstart) and the recipients of the Youth Allowance JobSeeker Payment, Parenting Payment, Farm Household Allowance and Special Benefit. On March 23 it was announced the Coronavirus Supplement would also be received by full-time students receiving Abstudy, Austudy and Youth Allowance for Students.
The additional $550 effectively doubles the payment formerly received by those on Newstart who were paid $565.70 a fortnight.
The legislation introducing the new payment has a sunset clause, stating that it will be reviewed in June, after three months of operation, and will lapse on September 27, six months after its introduction, by which time it is anticipated it will no longer be required.
Opponents of the low rate of support formerly give those on unemployment benefits have argued vigorously for the retention of the increased payment beyond the end of September, arguing that it is necessary on an humanitarian basis and in order to continue to stimulate the economy. Neither the Prime Minister, Scott Morrison, nor the Treasurer, Josh Frydenberg, supports this point of view.