Invest
JobSeeker cuts to cost 145,000 jobs
The Morrison government’s plans to reduce the coronavirus supplement for Australians on JobSeeker, Youth Allowance and Parenting Payment will see 145,000 jobs lost, costing $31.3 billion, according to new economic analysis.
JobSeeker cuts to cost 145,000 jobs
The Morrison government’s plans to reduce the coronavirus supplement for Australians on JobSeeker, Youth Allowance and Parenting Payment will see 145,000 jobs lost, costing $31.3 billion, according to new economic analysis.
Modelling by Deloitte’s Access Aconomics, on behalf of Australian Council of Social Services, analysed the impact of the subsidy being reduced to $250 per fortnight on 24 September before being removed completely on 31 December.
According to Deloitte Access Economics partner Nicki Hutley, every dollar that the government invests in JobSeeker is generating a significant economic return, helping to lift the country out of recession.
“Providing people without paid work with enough to get by is highly effective economic stimulus, as they have little choice but to spend straightaway on essentials,” Ms Hutley said.
She pointed out that higher-income earners who have the option to save money are more likely to do so in uncertain times, which will hurt the economy, making it less efficient than JobSeeker payments.
“Our analysis clearly shows that the government’s plans to reduce income support would set back the economy even further. We also know that this would take a serious toll on the wellbeing of millions of people who are without paid work, especially those in regional communities,” Ms Hutley said.
Australian Council of Social Service CEO Dr Cassandra Goldie said the doubling of Newstart has allowed Australians to purchase basic goods and service.
“But they now face a deeply uncertain future, with the prospect of these devastating cuts to their already tight budgets and 12 people receiving JobSeeker for every job vacancy, with this being 28 people for every vacancy in regional areas,” Dr Goldie said.
Dr Goldie pointed out that it goes beyond doing the right thing and creates a stronger economy as the nation looks to build out of its first recession in nearly three decades.
“People and businesses need this certainty in order to be able to rebuild – they need to know that the government has their backs,” Dr Goldie said.
“We’re calling on the government to extend the existing coronavirus supplement to prevent income cuts in two weeks, and move quickly to legislate a permanent, adequate JobSeeker rate that means people can cover the basics.”
About the author
About the author
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
