Twist in JobSeeker saga as it emerges handout's fate WON'T be decided anytime soon - and the coronavirus supplement will be extended past new year
The fate of the government's JobSeeker handout will not be decided in next month's federal budget, despite growing calls for the more certainty around the scheme.
Under the subsidy program an extra $550 was added to the base rate of $565.70 a fortnight for those looking for work.
The generous payment was introduced in April to help the surging number of recently unemployed workers get through the coronavirus crisis.
But on September 24, the $550 top up will be slashed to $250, as the Australian economy begins to rebound from the pandemic and more jobs come back.
The $250 handout, which about 1.4 million Australians rely on, is set to end on December 31.
According to the government, it's too early to say whether the program - which has already cost $12billion - should be extended into the new year.
The fate of the government's JobSeeker handout will not be decided in next month's federal budget, despite growing calls for the more certainty around the scheme. Pictured: Prime Minister Scott Morrison on September 18
The generous program was introduced in April to help the surging number of recently unemployed workers get it through the coronavirus crisis
'There's still much that we don't know about where the pandemic's going to end and what Australia is going to look like,' Social Services Minister Anne Ruston said.
'So we remain very focused on making sure the measures we have in place reflect the conditions at the time, and decisions about anything ongoing will be a matter for the time once the economy has settled and we know what a post-pandemic Australia looks like.'
'We only have to see what happened in Victoria over the last couple of months to realise how terribly volatile the jobs market is, so we want to make sure our responses are timely and targeted.'
Although Scott Morrison has hinted the government is likely to continue to support unemployed Australians into next year, the opposition say a decision needs to be made sooner.
Labor leader Anthony Albanese has called for a permanent increase in the welfare subsidy - to $1100 a fortnight.
Australian Council of Social Service chief executive Cassandra Goldie has also voiced her concerns.
'We need the government to have people's back & we need the government to be able to give people confidence. We need the government to give people easing of their distress about how they'll cope,' she told reporters on Friday.
Business Council of Australia chief executive Jennifer Westacott is also in favor of a JobSeeker increase and extension during the pandemic.
Under the subsidy program an extra $550 was added the base rate of $565.70 a fortnight, for those looking for work
How are the support payments changing from September?
JOBKEEPER
* The $1,500 fortnightly wage subsidy will continue until September 27
* From the end of September to January, JobKeeper will be reduced to $1,200 for full-time workers and $750 for people working 20 hours or less
* From January to March, the full-time rate will be $1000 and part-time will reduce to $650
* 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.
But there are a litany of voices who claim the generous handout is acting as a dis-intensive for prospective workers.
Australia's unemployment rate dropped from 7.5 per cent in July, to to 6.8 per cent in August, indicating the country is on the road to recovery.
However some employers say they're having trouble finding labour.
Duane Rutherfurd, who runs East Coast Bullbars in Brisbane's Clontarf, told the Australian Financial Review that he told two JobSeekers who had applied for a role, they were successful.
'We told them they had officially got the job but both said no because they didn't want to do it because they didn't want to have to drive that far,' Mr Rutherfurd said.
'It's very frustrating...what I see is that the stimulus from the government has become a roadblock for getting some people off the lounge. It really is a disincentive.'
Darren Steinberg, the chief executive of one of Australia's largest property companies, Dexus, has a similar view.
'People are saying: ''She'll be right, mate. I'll keep my support and I'll lie around on the beach''.'
Brisbane business owner Duane Rutherfurd says the government stimulus has become a roadblock for getting some people off the lounge and is a disincentive
When advertising for a position before the pandemic, Mr Rutherfurd said he would normally get about 150 replies.
At the moment he says there are only 30 to 40.
A survey of 1,100 businesses by the National Skills Commission's earlier this week found 47 per cent of respondents were having trouble finding staff - a figure up 28 percent.
Meanwhile, the government's other coronavirus supplement JobKeeper, has also come under fire on Friday after Treasury released data showing the Australian Taxation Office had received over 8000 tip-offs alleging misuse of the payment.
Cafes and restaurant businesses were by far the worst offenders, followed hairdressing and beauty services.
More than 900,000 businesses across Australia have received and handed out JobKeeper payments to 3.5 million workers totalling about $55billion.
Treasury released data showing the Australian Taxation Office had received over 8000 tip-offs alleging misuse of the payment. Pictured are the worst offending industries