People living on the unemployment benefit have been left feeling anxious and concerned about what the permanent rate of JobSeeker will be next year.
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A decision on the rate of JobSeeker beyond December 31 was not made as part of the federal budget this week.
JobSeeker payments were doubled to $1100 a fortnight when the pandemic hit thanks to a temporary $550 coronavirus supplement, but was dropped by $300 a fortnight last month.
The supplement will expire on December 31 but social service agencies are advocating for an increase to the pre-coronavirus payment that equated to $40 a day.
Turning back to $40 a day from 2021 would be a disaster for so many people around Australia.
- James Toomey, Mission Australia
Salvation Army Ballarat team leader John Clonan said most people had been managing to pay week to week living expenses with the additional coronavirus payment, but anxiety was building due to a lack of communication from government about the permanent rate.
"If it is going to return to what it was pre-COVID-19 then that would certainly be worrying for them," he said.
"Salvation Army would like it to increase by at least $150 a fortnight, if not more."
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Mission Australia chief executive James Toomey said people could be forced to make difficult decisions like going without adequate food, missing out on medication or being unable to afford transport to a job interview.
"Many can be pushed into stressful and unsafe living conditions as it's all they can afford," he said.
"Turning back to $40 a day from 2021 would be a disaster for so many people around Australia.
"It is too low, and would return too many people to poverty and drive many into homelessness at a time when we should be supporting people's wellbeing and taking steps towards recovery."
Brotherhood of St Laurence executive director Conny Lenneberg said the lack of certainty meant unemployed parents did not know how they would cover their rent and budget beyond Christmas.
The federal government budget focused on investment to create employment for young people who are unemployed through the $4 billion JobMaker Hiring Credit.
The scheme will provide financial subsidies to businesses who employ people aged under 35.
Tax cuts were also a focus, but Anglicare Australia executive officer Kasy Chambers said most people who received tax cuts would save instead of spending them.
"We already know that JobSeeker has given a badly needed boost to the economy - people have been spending their payments on food, transport, and essentials for their families," she said.
"Instead of locking in the benefits of the JobSeeker boost, the government is phasing in cuts that will hurt everyone - and bringing a black hole into the budget for decades to come."
People experiencing financial difficulty can seek help through Cafs financial counselling on 5337 3333 or contact Salvation Army, Uniting and other support agencies for emergency relief.