South Australians lifted out of poverty could return, advocates warn

Welfare advocates say thousands could plunge back into poverty after JobKeeper is cut, but the government says finding a job is the way out.

More than 117,000 South Australians are about to lose $100 from their fortnightly JobSeeker payments, with the COVID-19 supplement subsidy slashed from $250 to $150 from January 1.

The decision has angered welfare advocates, with SA Council of Social Services chief Ross Womersley fearful the cash shortfall will have a huge mental-health impact on tens of thousands of people.

The supplement, which was introduced by the Federal Government to help with job losses during the pandemic, is set for a complete cut by the end of March.

Mr Womersley said: “We know of the mental strain of the last 12 months with the impact of the coronavirus on people across the community.

“Nowhere has it been harder than for people that have lost their jobs.”

SACOSS CEO Ross Womersley. Picture: Tait Schmaal

However, the South Australian senator responsible for the payment has stressed the supplement has already cost the commonwealth $17.2bn – which will grow to more than $20bn by the end of March.

Social Services Minister Anne Ruston said $1.3bn has been spent in South Australia on the coronavirus supplement to date.

“The government has twice extended the temporary coronavirus supplement, which will continue to be paid on top of the rate of JobSeeker through to the end of March as we support Australians through the pandemic,” Senator Ruston said.

“We know that getting a job is a real game changer in everyone’s life.

Social Services Minister Anne Ruston. Picture: NCA NewsWire / Gary Ramage

“As the economy reopens, the government is focused on supporting businesses to create those jobs through JobMaker and putting people on a pathway to those jobs through JobTrainer and intensive support for people with additional barriers.”

Worldwide Unemployed Workers Union executive director Hayden Patterson said the supplement had bought people out of poverty.

“They could have three meals a day, pay for the doctor, pay for the dentist, pay their bills in advance for the first time,” he said.

“It took a stroke of a pen to lift most Australians out of poverty and it took a stroke of a pen to put them back there again.”

On January 4, businesses could also be forced to let staff go as the second stage of JobKeeper begins, with employers needing to prove hardship so their employees can continue to get the payment.

Mr Womersley said the base rate of income support must rise.

He said the virus supplement let people live a very basic but somewhat reasonable lifestyle.