MORE than $11 million will be taken out of the local economy if the Federal Government’s declines to extend its Job Seeker payment, according to a local MP.
Prime Minister Scott Morrison introduced the payment at the onset of the COVID-19 pandemic in March to replace the former Newstart payment.
The new payment effectively doubled Australia’s standard social welfare payment from $565.70 a fortnight to $1115.70 and was announced at the same time as the $1500 Job Keeper supplement to support businesses paying their workers.
Both payments are set to wrap up at the end of September though, when the Federal Government expected much of the economic downturn brought on by the pandemic to be over.
But as new COVID-19 infections in Victoria and New South Wales rise, Labor has called for the Job Seeker payment to be extended.
According to Member for Spence Nick Champion, closing the payment and reverting back to the former Newstart rate would “rip out” $11 million from the local economy – the equivalent of 4399 jobs.
“Millions of out-of-work Australians are anxious about what level of support will be available to them at the end of September,” he said.
“It defies reality that the Prime Minister believes that he can snapback JobSeeker, when there are nowhere near enough jobs for the people who need them.
“Scott Morrison’s snapback of JobSeeker is not a plan for jobs and will place our nation’s economic recovery at risk.”
Mr Champion’s electorate covers the Gawler, Elizabeth, Mallala and Two Wells areas, all of which also form part of the Australian Bureau of Statistic’s (ABS) Adelaide North area.
The latest unemployment figures for the area revealed local unemployment has rose by .4 per cent since the onset of the pandemic in March, with around 500 people losing their job in May alone.
A further local unemployment jump is expected to be announced tomorrow, when the ABS releases its detailed figures for June.
On Tuesday morning, Prime Minister Scott Morrison announced JobSeeker would be extended past September and into the new year, but the payment would be scaled back.
After September 27 the payment will fall to $810 a fortnight, and will be reduced again around December.
Income rules have also been relaxed, meaning recipients will be able to earn up to $300 a fortnight before it starts affecting their payments.
We will make further decisions about JobSeeker closer to the end of the year or potentially even in the Budget. It is our intention that we would expect that there would be likely a need to continue those supplements post-December," Mr Morrison said.
