Toowoomba economy to lose $2m with cuts to coronavirus supplement
CHANGES to coronavirus supplements will have disastrous impacts on the local economy, a new report suggests.
Business
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It has been estimated that regional communities will be hit hardest by the Federal Government’s planned cuts to the coronavirus supplement for people on Jobseeker,
Youth Allowance and parenting payments.
In the Maranoa federal electorate, there are currently 13,869 people receiving Jobseeker, Youth Allowance and Parenting Payment – an increase of 43% since December 2019.
An analysis conducted by Deloitte recognised that at July 2020, there were just 1,169 jobs advertised in Toowoomba & South West Queensland.
The report also claims cutting the coronavirus supplement by $150 a week will remove an estimated $2,080,350 from the local economy.
Access Economics shows that cutting and removing the coronavirus supplement will result in the loss of 33,000 jobs in Queensland, including:
– 1,274 in Toowoomba
– 336 in the Scenic Rim
– 335 in South Burnett
ACOSS CEO Dr Cassandra Goldie said regions which have traditionally relied on the tourism and service sectors for employment will be some of the hardest hit due to rapid job losses as visitor numbers have fallen.
“Delivering a permanent and adequate increase to the Jobseeker payment is one of the most effective ways to inject dollars into regional communities” she said.
The Deloitte report examines the impact on the economy with the coronavirus supplement cut on September 25 and fully removed at the end of December.
The report estimates the cut would reduce the size of the economy by $31.3 billion and see an average loss of 145,000 Full-Time Equivalent jobs across 2020-21 and 2021-22.
“Our analysis clearly shows that the Government’s plans to reduce income support would set back the economy even further,” Deloitte Access Economics Partner Nicki Hutley said.
“We also know that this would take a serious toll on the wellbeing of millions of people who are without paid work, especially those in regional communities.”
Australian Council of Social Service CEO Dr Cassandra Goldie said after 26 years without a real increase to Newstart, people without paid work were finally able to afford the basics following an increase to the allowance.
“But they now face a deeply uncertain future, with these devastating cuts to their already tight budgets and 28 people receiving Jobseeker for every job vacancy in regional areas,” she said.
“We’re calling on the Government to move quickly to legislate a permanent, adequate Jobseeker rate that means people can cover the basics.”
