New report shows Australians are worried about the government tapering financial support

A growing number of Australians are fearful the tightening of JobKeeper and Jobseeker will make it harder to meet financial obligations.

A growing number Australians are fearful the tightening of JobKeeper and Jobseeker payments will make it much harder to meet financial committments and put food on the table.

According to a survey conducted by financial comparison group Mozo, one in five Australians who are receiving government payments believe they will not be able to pay for essential items or afford their current residence if the pandemic support taps are turned off.

Mozo director Kirsty Lamont says the tapering of the schemes at the end of the month is causing a heightened level of anxiety as to whether households will be able to meet financial commitment on the reduced payments.

On September 28, JobKeeper fortnightly payments will be reduced from $1500 to $1200, while the JobSeeker payment will be slashed from $1100 per fortnight to $815.

Mozo says about 8.2 million Australians are receiving some form of government-backed financial assistance due to the pandemic.

Mozo director Kirsty Lamont says the tapering of the schemes at the end of the month is causing a heightened level of anxiety. Picture: Supplied

“More than one in four Australians currently receiving the government assistance say what they’re receiving is not enough to come and go on, painting a bleak picture for October onwards,” Ms Lamont said.

“As a nation, we’ve seen a major cutback on spending as Australians worry about their financial future and try to safeguard themselves.”

Mozo’s survey showed that 31 per cent of respondents would not be able to pay incoming bills without assistance, while 20 per cent believed they would not be able to afford groceries.

It also revealed 10 per cent would not be able to afford childcare, and 21 per cent said they would not be able to pay for their current residence.

Mozo banking expert Peter Marshall said the end of mortgage repayment holidays at the end of September would place added strain on people who would also be receiving a whittled-down version of Jobseeker or JobKeeper.

“At some point these things (mortgage deferrals and wage subsidies) are going to have to end,” he said.

“But them happening at the same time is going to mean a lot of uncertainty for a lot of people.”

Mozo’s research found that younger workers were more likely to be receiving either JobKeeper or JobSeeker payments.