Here's How Cuts to JobSeeker Will Impact All Aussies

A new report indicates a huge fallout is coming.

With the coronavirus pandemic leaving a lot of Australians without work, many of us have relied on government supplements to get us through until we are able to go back to work or find a new job.

Most people who lost their jobs during this period were able to receive Centerlink’s JobSeeker coronavirus supplement, but with the rate of JobSeeker being cut by $300 a fortnight on 25 September, many Aussies will struggle to make ends meet.

A report published by Deloitte Access Economics has found that it's not only those looking for work who will lose out, as the new JobSeeker cuts will lead to the loss of $31.3 billion from the economy and the equivalent of 145,000 full-time jobs.

The report stated that maintaining the rate of JobSeeker wont discourage job seekers from looking for and taking up work during this time. Instead, it suggests that cutting the supplement by $300 a fortnight would harm the economy in a big way.

Last week, the Australian Government announced that we are officially in a recession, which means, that we are already experiencing economic decline and unemployment is rising.

Deloitte's report, written for the Australian Council of Social Service (ACOSS), stated that cutting the rate of JobSeeker would make our economic position even worse.

"The economy is in a deep recession, and so reducing government spending would hurt more than if the economy were in good shape," the report said.

It’s also likely to affect remote and regional communities the most, as well as Victoria due to its second wave of the virus.

Essentially, because people are struggling to get by, fewer people are spending money and therefore contributing to the economy. With less people able to support small businesses and being forced to save rather than spend, we could see further economic decline.

Right now, JobSeeker recipients are getting $550 a fortnight but when the supplement is removed altogether in December, those receiving the supplement will be on just $40 a day.

As of August, there are about 15 job seekers for every single job that is available, which means a lot of Aussies will be forced to live below the poverty line once the rate is cut.

Morrison’s plan to push 740,000 people into poverty next week makes no economic sense but, more importantly, it’s utterly monstrous

— Joshua Badge (@joshuabadge) September 15, 2020

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