Morrison decides those with the least can manage with less

July 21, 2020
Issue 
The federal government has announced cuts to the pandemic supplements even though jobs are in short supply.

Despite the deepening economic crisis听and economists agreeing that there is little hope of a quick rebound, the federal government has decided those with the least should manage with less.

Prime Minister Scott Morrison announced on July 21听that the JobSeeker coronavirus supplement听will be reduced from $550 a听fortnight to $250 a听fortnight from the end of September. This will take the daily payment rate to $59 a day (down from $80).

He also said the JobKeeper subsidy will be cut from $1500 a fortnight听to $1200 a听fortnight for full-time workers听and $750听a听fortnight听for part-time workers.

These changes to people鈥檚 livelihoods will disproportionately impact low-income workers, who are already struggling to make ends meet during the COVID-19听pandemic. It will affect women worse because they make up more of the part-time workforce.

The number of unemployed people has hit a 22-year high and the country is on course for its first recession in nearly three decades. Nearly 1 million people are out of work听and changes to the pandemic supplements will not help, say unions and welfare groups.

The JobSeeker changes will allow people to earn up to $300 a week without the payment being affected听from the end of September. But this is hardly generous. Centre for Future Work听senior economist 听it is a 鈥渂latant admission鈥 by government that unemployment benefits will be used to 鈥渟ubsidise and expand low-wage precarious work鈥.

听(ACOSS)听spokesperson Cassandra Goldie said the cut to听JobSeeker听will have a severe impact on millions. 鈥淚t means from September 25, a person on JobSeeker will lose $300 per fortnight or $150 per week, and face the prospect of a further cut just after Christmas.鈥

ACOSS is calling for the full coronavirus supplement to be 鈥渕aintained until it is replaced with a permanent, adequate increase鈥.

The government has only committed to extend it to December 31, meaning that the prospect of returning to听surviving听on $40 a day听is a major concern for many.

Goldie said听while the听government鈥檚 relaxation of JobSeeker income tests is 鈥渨elcome鈥, it provides little benefit while jobs are scarce. ACOSS estimates that 13 people on JobSeeker apply for every one job available.

She urged the Coalition government not to bring forward its promised tax cuts which, she said, 鈥渨ould mainly benefit people earning more than $100,000 per year鈥.

The tax cuts would do 鈥渘othing to help the millions in desperate financial need鈥澨鼼oldie said, adding 鈥渢heir economic impact would be minimal as evidence from the last round of cuts showed鈥.

While she supports a greater targeting of JobKeeper, Goldie said it 鈥渘eeds to be very carefully calibrated鈥.

ACOSS is also unhappy the government has not closed any gaps in the scheme: temporary migrants and international students still do not have access to JobKeeper, JobSeeker or Medicare.

鈥淲hat we needed from the government today was an adequate, permanent fix to income support, not a temporary, lowered extension,鈥 Goldie said.

The Australian听Council of听Trade Unions (ACTU) questioned the justification for cutting JobKeeper payments, especially to those working fewer than 20 hours, many of whom are very low paid, having lost second and third jobs.

described the听decision as 鈥渕isguided鈥 and said its plan will 鈥渃ause financial hardship to huge numbers of working people鈥.

She said the government may have 鈥渄elayed the economic catastrophe that would have resulted from pushing these programs off the cliff during the pandemic鈥, but that there needs to be 鈥渇ar-reaching government investment鈥 to 鈥渃reate the jobs we will need to rebuild the economy鈥.

鈥淭he increase of the income-free threshold to $300 for JobSeeker is welcome, but the reintroduction of mutual obligations is a worrying return to the punitive approach to welfare payments which we hoped the Morrison government had left behind,鈥 McManus said.

told 91自拍论坛:鈥淚t鈥檚 amazing how much money the Coalition government found when it wanted to and how quickly it can turn off the tap.

鈥淚t would not raise the dole to livable levels six months ago, but suddenly found billions for the various coronavirus packages when the health and political crises hit.

鈥淣ow, as the recession starts to bite, and Victoria has had to return to听lockdown, the federal government thinks it can wind back support for those who need it most.

鈥淚t鈥檚 good that working people have forced the extensions to these programs, but we must continue to campaign against the cuts and restrictions, especially as tax cuts and other handouts continue to flow to the rich.

"In addition, some companies,听such as the supermarket giants, Harvey Norman and听big logistics corporations, have made extra profits out of the pandemic. They should be forced to pay more tax.

鈥淭his will only happen, however, if we continue to organise to ensure working people, and especially the unemployed, are not left behind.鈥

Bolton said the Socialist Alliance supports a secure income guarantee, and an end to exclusions, waiting periods, cashless debit cards and 鈥渕utual obligation鈥 activities when it comes to JobSeeker.

Australian Greens鈥 leader 听has also criticised the cuts. He pointed out听that the proposed extended schemes are still $44 billion under budget, meaning听there is听no excuse to cut it back further. He said the government should be expanding the jobs payment to all workers who need it.

Bandt also criticised Labor leader Anthony Albanese who seemed more concerned with about 900,000 workers who have received a little bit more on the JobKeeper program than before the pandemic. Albanese complained on ABC Radio National Breakfast on July 21 that this would have added billions to the public debt.

Anglicare Australia has added its support to calls to support the estimated 1.6 million people who are locked out of work, as well as the thousands who were out of work and living in poverty before the pandemic hit. It says the JobSeeker rate should be raised to听above the poverty line permanently.

Anglicare听spokesperson听Imogen Ebsworth听said:听鈥淧eople will be recovering from this pandemic for months and years to come. They need certainty. That means a permanent increase 鈥 not a delayed cut-off.

鈥淚nstead of helping people plan for their future, these changes will simply 鈥榩hase-in鈥 poverty,鈥澨齭he said.

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