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
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more

Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more