More than 1.4million Australians will have their Jobseeker benefits slashed by $300 from tomorrow when new assets test comes into effect
Australia's 1.45million JobSeeker recipients are having their unemployment benefits slashed by $300 from tomorrow as a new assets test begins.
The coronavirus supplement is being diluted from $550 a fortnight to $250 from September 25.
This will see JobSeeker payments fall from $1,115.70 to $815.70, following a temporary doubling of unemployment benefits for six months.
Those who go on the dole from Friday will also face a new liquid assets test waiting period if they have more than $5,500 in the bank.
Australia's 1.45million JobSeeker recipients are having their unemployment benefits slashed by $300 from tomorrow
The revived rules will affect Australia's 1.45million people on JobSeeker, who are either jobless or are receiving sickness or bereavement benefits.
Another 234,690 Youth Allowance recipients, students and apprentices also facing longer waiting periods for welfare.
Treasurer Josh Frydenberg hinted JobSeeker could be permanently raised from its base rate of $565.70 a fortnight in the October 6 budget
Treasurer Josh Frydenberg hinted JobSeeker could be permanently raised from its base rate of $565.70 a fortnight in the October 6 budget.
The coronavirus supplement to the dole ends on December 31.
'We will reassess the situation closer to the end of the year,' Mr Frydenberg said.
Mr Frydenberg, the Liberal Party's deputy leader, said his boss Prime Minister Scott Morrison was in favour of providing welfare to those in need with Australia now in recession for the first time in 29 years.
'The Prime Minister has signalled very clearly we are leaning in to providing additional support for those who need it into next year,' the treasurer said.
Labor's social services spokeswoman Linda Burney said an economic downturn was the wrong time to cut JobSeeker payments.
'Now that money is going to be reduced dramatically at the end of this week,' she said.
Those on the dole from Friday will also face a new liquid assets test waiting period if they have more than $5,500 in the bank. Pictured is a near deserted city street in Melbourne
'It will mean people will go without food. It will mean people will not be able to look after their children and get them to school as they'd like to.
New assets test to get JobSeeker benefits
Singles with no dependent children and less than $5,500 in the bank won't have to wait for the dole
The waiting period is one week for bank balances of $5,500 to $5,999
That increase to a fortnight for $6,000 to $6,499 in the bank
The waiting period is increased by one week - up to 13 weeks - for every $500 increment in the bank
Criteria for couples and parents also applies to get JobSeeker or Youth Allowance
The liquid assets test was suspended in March during the start of the COVID-19 shutdowns but is being revived on September 25
'And quite often, the decision is between medication and eating.'
Under the new liquid assets test, a waiting period of between one and 13 weeks is being reintroduced.
Single unemployed Australians with less than $5,500 and no children won't have to wait for welfare if they lose their job.
Those with more than that amount in the bank will have to wait for a week.
If they have more than $6,000 in the bank, the waiting period is a fortnight.
This waiting period is lengthened by a week, up to 13 weeks, for every $500 increment of savings in the bank.
That means Australians with $11,500 or more in the bank would have to wait until Christmas to receive the dole.
The federal government had suspended the liquid assets test in March, during the early stages of the COVID-19 shutdowns of non-essential businesses.
From September 28, JobKeeper wage subsidies are also being scaled back from a flat rate of $1,500 a fortnight to $1,200 for those working 20 hours or more.
This will see two million workers lose out as JobKeeper 2.0 covers 1.4million employees instead of 3.5million.
During the three months to August, 421,800 jobs were created, although much of that was a rise in the number of jobless people declaring themselves to be self-employed.
Jobs rose in 17 of the 19 sectors listed by the Australian Bureau of Statistics on Thursday.
Employment fell, however, in the electricity, gas, water and waste services category (down 14,200) and construction (down 11,200).
CommSec senior economist Ryan Felsman said the coronavirus lockdowns were disproportionately affecting women and those in insecure jobs.
'The downturn has taken a huge toll on younger and older Aussies, females, casual and part-time workers, in particular,' he said.
How are the support payments changing from September?
JOBKEEPER
* The $1,500 fortnightly wage subsidy will continue until September 27 - covering 3.5million workers
* From the end of September to December 31, JobKeeper will be reduced to $1,200 for full-time workers and $750 for people working 20 hours or less - with 1.4million workers eligible
* From January to March, the full-time rate will be $1,000 and part-time will reduce to $650 - with the scheme covering 1million workers
* Businesses turning over less than $1billion will have to requalify for the program at both stages through showing a 30 per cent drop in revenue.
* Businesses with more than $1billion in turnover have to demonstrate a 50 per cent fall
JOBSEEKER
* The elevated unemployment benefit will remain at $1,100 a fortnight until September 24
* From that date until the end of the year the $550 coronavirus supplement will be cut by $300 to make the overall fortnightly payment $800
* People will be able to earn up to $300 without having their payment reduced
* The mutual obligation rules requiring people to search for four jobs a month will restart on August 4
* Penalties for people refusing a job offer will be reintroduced
* Job search requirements will increase in September when the assets test will also return
* The permanent JobSeeker rate to take effect from January next year will be announced in the October 6 budget.