More than 2500 NT jobs to be lost when JobSeeker cuts kick in, report finds

MORE than 2500 jobs and $348m will be lost over the next two years in the NT if JobSeeker payments are cut, a new report says.

MORE than 2500 jobs and $348m will be lost over the next two years in the NT if JobSeeker payments are cut, a new report says.

A Deloitte report commissioned by the Australian Council of Social Service looked into the coronavirus supplement for people on JobSeeker, Youth Allowance and parenting payments.

The federal government plans to cut payments on September 25, reducing incomes of people on JobSeeker by $300 a fortnight.

Payments will fall from $1500 a fortnight to $1200, while people working less than 20 hours a week will receive $750.

The payments are expected to be cut to the old Newstart rate of $40 a day at the end of December.

NT Council of Social Service chief executive Deborah Di Natale said JobSeeker helped save jobs in the NT.

“There are 33,835 people receiving the coronavirus supplement in the Territory. That is money that is being spent, and is keeping our economy ticking over,” Ms Di Natale said.

More than 2500 jobs and $348m will be lost over the next two years in the NT if JobSeeker payments are cut, a new report says. Pictured is the Centrelink office on Knuckey St in the Darwin CBD. Picture: Che Chorley

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“The Deloitte report shows the Northern Territory has some of Australia’s most disadvantaged regions and that they have been the worst hit in the current crisis. They will also feel the greatest impact with the planned cuts to JobSeeker.

“There are far more economic risks to reducing JobSeeker now than there are to maintaining the rate.”

Deloitte Access Economics’ Nicki Hutley said the supplement would help pave the way out of the recession.

“Providing people without paid work with enough to get by is highly effective economic stimulus, as they have little choice but to spend straight away on essentials,” she said.

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“People on higher incomes have the option of saving, which many are doing right now given the uncertainty. This is why other measures such as income tax cuts would not be as effective in getting us out of this recession.

“Our analysis clearly shows the government’s plans to reduce income support would set back the economy even further.”

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