The removal of the current JobSeeker supplement will result in 242,000 renters and 246,000 mortgage holders suddenly living in poverty.
Those are some of the grim findings from The Australia Institute’s new report, which tips that Thursday’s announcement could place untenable pressure on the housing market.
The report, led by TAI’s senior economist Matt Grudnoff, estimates 650,000 Australians, including 120,000 children under 14, would be “pushed into poverty”.
Even with the supplement removed, and an extra $150 a fortnight added to the pre-COVID JobSeeker rate, 505,000 Australians will still not be able to make ends meet.
“As unemployment has increased over recent months, the JobSeeker supplement has been the only thing standing between many recently jobless Australians and poverty,” Mr Grudnoff said.
“If JobSeeker is cut in half, hundreds of thousands of Australians will find themselves struggling to pay the rent or service their mortgages for the first time.
“This will impact homelessness, put pressure on the banking system and have a knock-on effect to property investors. Those who own residential investment properties should be particularly concerned about the government ending the coronavirus supplement.
“The Coronavirus Supplement has been an essential part of our nation’s response to this recession and has improved the lives of nearly half a million Australians,” said Ben Oquist, Executive Director of The Australia Institute
“In fact, no other government has ever lifted so many people out of poverty so quickly.
“Removing the supplement would put more than 600,000 Australians, including more than 100,000 children, into poverty. This will not only have serious negative social effects for decades to come but makes terrible economic policy by effectively withdrawing much needed stimulus.”
