Earn
JobSeeker cuts push 155k Aussies into poverty
A further 155,000 Australians will plunge into poverty as the coronavirus supplement ends tomorrow, new research has revealed.
JobSeeker cuts push 155k Aussies into poverty
A further 155,000 Australians will plunge into poverty as the coronavirus supplement ends tomorrow, new research has revealed.
According to the Australian Institute’s Matt Grudnoff, the government’s choice to reduce welfare payments will mean there will be over a million more people living in poverty compared with March 2020, and 580,000 more people in poverty compared to the pre-COVID period.
“This one policy measure shows that whether to leave Australians to live in poverty is a government choice,” said Mr Grudnoff, senior economist at the Australia Institute.
Research released by the Australian Institute shows the removal of the coronavirus supplement will see 155,000 people fall into poverty, including 20,000 children.
“If instead of cutting the coronavirus supplement, the government had instead chosen to restore the full $550 supplement, then half a million Australians would be lifted out of poverty, including 90,000 children,” Mr Grudnoff said.
From 1 April 2021, welfare recipients will lose the extra $75 coronavirus supplement payment, which is slightly offset by receiving a $25 per week boost in welfare payments.
This means 1.95 million Australians who are currently on working-age payments will receive an increased $25 a week payment, including those on JobSeeker, Parenting Payment, Youth Allowance and Austudy.
The new JobSeeker rate for a single person with no children is $310 per week, or just $44 a day.
According to Henderson, poverty line for a single person is $561 per week, with welfare payments above this mark when the $550 coronavirus subsidy was first added to additional welfare payments.
Mr Grudnoff said the initial $550-a-week supplement “lifted more Australians out of poverty than any other single government policy measure”, with half a million people raised above the poverty line.
However, with the COVID-19 economic recovery continuing, the government has decided to wind back its support, with the coronavirus supplement subsequently ending.
According to the economist, this represents a lost opportunity to make significant improvements to the rates of poverty in Australia, including the number of children in poverty.
“The government has proved that it is possible to significantly reduce poverty in Australia. If the government increased Jobseeker by $550 a fortnight, the original coronavirus supplement rate, poverty rates would fall rather than increase,” he concluded.
About the author
About the author
Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to pres...Read more
Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for s...Read more
Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. ...Read more
Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. ...Read more
Salary
Show me the money: I deserve a COVID recognition payment, and so do you
Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid. ...Read more
Salary
Is Australia headed for the ‘Great Resignation’?
A wave of resignations from Australian workers is expected in the next six months. ...Read more
Salary
Earnings surge in lockdown, but is a slump ahead?
A new report from CBA has shown that it may actually pay to be in lockdown, as growth in household income surged ahead in NSW and Victoria. ...Read more
Salary
RBA sets sights on 4% unemployment
The RBA has updated its key objectives in order to jolt the Australian economy into growth, including a two-decade low unemployment rate of 4 per cent. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to pres...Read more
Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for s...Read more
Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. ...Read more
Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. ...Read more
Salary
Show me the money: I deserve a COVID recognition payment, and so do you
Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid. ...Read more
Salary
Is Australia headed for the ‘Great Resignation’?
A wave of resignations from Australian workers is expected in the next six months. ...Read more
Salary
Earnings surge in lockdown, but is a slump ahead?
A new report from CBA has shown that it may actually pay to be in lockdown, as growth in household income surged ahead in NSW and Victoria. ...Read more
Salary
RBA sets sights on 4% unemployment
The RBA has updated its key objectives in order to jolt the Australian economy into growth, including a two-decade low unemployment rate of 4 per cent. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
