JobSeeker: Labor to make decision after federal budget

Labor will wait to see what’s on the government’s agenda before revealing its own plan for JobSeeker but says $40 a day isn’t enough.

Labor will not reveal how high it will lift the JobSeeker payment until after the federal budget.

Roughly one million Australians would be forced to survive on just $40 per day when JobSeeker returns to its pre-pandemic level at the end of March.

Prime Minister Scott Morrison avoided committing to a position on the payment’s future on Monday, while Labor has said it will not return to $40 per day under an Albanese government.

But Labor treasury spokesman Jim Chalmers revealed the party would wait until after the May budget to announce its proposal.

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Labor will wait until after the budget to reveal its plans for JobSeeker. Picture: Darren England / AAP Image

“I think it’s only responsible that we see what the government proposes, we see what the budget position is we would inherit and come to a view then,” he said.

But Mr Chalmers described the need for a permanent increase as “self-evident”, saying it “ticked many boxes”.

“I think it’s actually both a fairness issue, about making sure people can support themselves while they look for work, but it is also an economic issue,” he told ABC Radio on Thursday.

“There are a lot of shops and small businesses which have done well from the fact that people have had more spending power.

“The government has been delaying giving people a bit of certainty on what the payment looks like after next month.

“They should do that as soon as possible.”

The JobSeeker payment could return to $40 a day. Picture: NCA NewsWire / Joel Carrett

The comments echo those made by Reserve Bank governor Philip Lowe, who made a moral argument for a permanent increase to the National Press Club on Wednesday.

“It’s not a macroeconomic management issue, it is a fairness issue,” he said

“As a society, what level of support do we want to provide to people who don’t have a job?

“Different people legitimately have different views on the level of support stopping, (but) my own view is that some increase is justifiable.”

But Dr Lowe rejected Labor’s call to extend the JobKeeper payment beyond March.

He said the program had “saved many people their jobs” but was “only ever meant to be temporary”.

“Given the recovery of the economy, I can understand why the government wants to stop that program as they said they would,” he said.

RBA boss Phillip Lowe has called for the Jobseeker supplement to stay above its pre-pandemic level. Picture: Joel Carrett / AAP Image

Dr Lowe conceded “there will be some job shedding” when the program ended.

But he said there was room for discussion over targeted support for industries like tourism, which has been hard hit by the pandemic.

Mr Chalmers said JobKeeper ending prematurely would be “devastating” for small businesses.

“There will be job shedding when JobKeeper ends, and the path ahead will be bumpy and uneven,” he said.

“If we rush to pull support out of the economy, that will make a difficult situation even worse in places like Cairns, which have been impacted by the closure of the international border.”