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On 1 April, Australia’s 1.3 million JobSeeker recipients will receive a $100 a fortnight reduction in their incomes. This is because the $150 a fortnight Coronavirus supplement will be abolished, replaced by a $50 a fortnight permanent increase in the JobSeeker allowance to a measly $44 a day.
The changes will push the JobSeeker allowance way below the poverty line, according to the Grattan Institute (see next chart).
It will also drive Australia’s unemployment benefits to the second lowest level in the OECD, behind only Greece:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.