Coronavirus: Scott Morrison flags bolstered JobSeeker for 2021 amid pressure to permanently increase rate

Scott Morrison is under renewed pressure to permanently increase JobSeeker payments.

Prime Minister Scott Morrison speaks to the media in Canberra on Tuesday. Picture: Gary Ramage

Scott Morrison is under renewed pressure to permanently increase the rate of JobSeeker as he promises welfare recipients they will receive a more generous amount than the $550 Newstart allowance into next year.

The Prime Minister and Josh Frydenberg have announced the income support of Australians on JobSeeker, which replaced New­start in March, would from September 25 reduce by $300 a fortnight to $815.70.

That includes the $550 JobSeeker payment and $250 COVID-19 supplement, which will decrease from $550 to $250 a fortnight.

At the same time, individuals will be able to earn up to $300 every two weeks without forgoing any of their JobSeeker payment or COVID-19 supplement.

While the reduced rate is guaranteed until December 31, Mr Morrison anticipated the coronavirus supplement would continue into 2021 but would not say at what amount.

He also refused to concede the now obsolete Newstart allowance was too low.

“That’s not a matter that we’re looking at, at the moment,” Mr Morrison said.

“We’ve increased JobSeeker significantly through the pandemic and we’re still in the pandemic phase.

“And given that we have no … intention of that going back to the original JobSeeker base payment certainly by the end of December … I would be very surprised if we weren’t to extend it beyond then.”

Queensland Nationals senator Matt Canavan, who before the coronavirus pandemic was among a growing number of Coalition MPs calling for an increase to Newstart, said a permanent JobSeeker payment of $815.70 was concerning. “I’m not sure we can afford a long-term increase in the dole, given the size of our post-COVID debt,” he said.

Opposition social services spokeswoman Linda Burney said a temporary increase beyond September was a step in the right ­direction but a permanent lift was required to “help keep people out of poverty and into secure work”.

She did not nominate what the permanent rate should be.

The rate of JobSeeker for 2021 is set to be announced in the Oct­ober 6 budget or later this year.

There are more than 1.6 million Australians on the payment.

Mutual obligations will also be reintroduced from August 4, requiring welfare recipients to search for four jobs each month.

If a jobseeker refuses an offer of suitable employment without a valid reason, their payment may be cancelled and they may have to wait four weeks before they can reapply for income support.

“It is reasonable for the government to reintroduce proportionate and constructive mutual obligation requirements, where this helps people get work, but it must not be punitive,” Ms Burney said.

Australian Council of Social Service chief executive Cassandra Goldie said reducing JobSeeker would “hurt millions of people just keeping their heads above water”.

“The full supplement should be maintained until it is replaced with a permanent, adequate increase,” Dr Goldie said. “Instead, the corona­virus supplement has been extended only to 31 December, with people facing the prospect of returning to $40 a day on New Year’s Day.

“While the Prime Minister said the supplement may be extended beyond the end of the year, what we needed … was an adequate, permanent fix to income support, not a temporary, lowered extension.”