The Morrison Government is wishing vulnerable Australians a Happy New Year by cutting the Coronavirus Supplement from $250 per fortnight to $150 per fortnight on 1 January 2021.
This will rip out over $1.2 million a fortnight from the Shortland economy.
This payment is paid to 12,273 Shortland residents who are currently receiving the JobSeeker Payment, Youth Allowance, Parenting Payment, Widow Allowance, Sickness Allowance, Austudy, ABSTUDY Living Allowance, Partner Allowance, and Special Benefit.
The Government is planning on scrapping the Coronavirus Supplement entirely from 1 April 2021 meaning that people receiving JobSeeker will go back to living off $40 a day.
There are currently around 1.8 million Australians on JobSeeker alone, and the Government’s own figures show an additional 90,000 are expected to be out of work by March.
In addition, there are about 13 job hunters for every job vacancy in Australia.
Local food banks have reported up to a tripling in demand for their services as a result of the Government’s cut to JobSeeker in September.
It is far too soon for Scott Morrison to be withdrawing this support for families, jobs, and businesses.
We know that people who rely on social security payments are more likely to spend and support their local economy.
By prematurely cutting this support, the Prime Minister is ensuring this recession is longer and deeper than it needs to be.
Scott Morrison should be extending the Coronavirus Supplement until the economy has bounced back and business confidence has improved.
In addition, he must commit to increasing the JobSeeker base rate so that it does not revert back to $40 a day from 1 April.