Cuts to JobSeeker predicted to push thousands of Tasmanians into poverty

Thousands of Tasmanians, including hundreds of children, will be pushed into poverty because of the end of the JobSeeker coronavirus supplement, new figures warn.

ABOUT 7000 Tasmanians, including 900 children, will be forced to live in poverty because of the ending of the coronavirus supplement for JobSeeker recipients, new economic modelling shows.

Senior economist with the Australia Institute Matt Grudnoff said the introduction of the coronavirus supplement in March 2020 had freed 4200 Tasmanian children aged 0 to 14 from poverty.

“If this reduction in poverty had been maintained, it would have made a significant difference for many children for the rest of their lives,” Mr Grudnoff said.

“Instead, by the end of 2020, Tasmania had 7800 more children living in poverty than when the coronavirus supplement was first introduced.

“A further 900 will be pushed into poverty when the supplement ends and is replaced by a $25 per week increase in the base rate.

“Cuts to the coronavirus supplement, combined with growing unemployment as a result of the recession, have increased the number of Tasmanian residents in poverty.”

Senior economist with the Australia Institute Matt Grudnoff warns thousands of Tasmanians will be pushed into poverty as the JobSeeker supplement ends. Picture: RICHARD JUPE

The coronavirus supplement for people receiving the Jobseeker payment was introduced at the end of March 2020 at a rate of $275 a week and ended on March 31.

Mr Grudnoff said the increase in JobSeeker payments had changed lives.

“This one change in policy almost doubled unemployment payments and lifted 18,000 people in Tasmania out of poverty,” he said.

“Since then, the Morrison Government has implemented three cuts to the coronavirus supplement: first at the end of September 2020, to $125 per week, then at the end of December 2020, to $75 per week, and finally removing the supplement altogether on the 31st of March 2021 and replacing it with an increase in the base JobSeeker rate of $25 per week.

“The overall increase in poverty in Tasmania from March 2020 until March 2021 is 30,000 people.”

Federal Treasurer Josh Frydenberg. Picture: Sam Mooy/Getty

Mr Grudnoff said the government did not have to scrap the supplement.

“Instead of reducing payments to the unemployed, the Government could instead restore the coronavirus supplement to its full amount of $275 per week,” he said.

“If it did so, the number of Tasmanian residents in poverty would decrease by 15,000 instead of increasing by 7000 – a difference of 22,000 Tasmanian residents who would not be in poverty.

“Poverty in childhood can have crippling lifelong effects on the child’s cognitive development, social, emotional, and behavioural development, and puts the child at risk of a range of adverse health outcomes.”