Mixed Blessings in Stimulus Package Stage 2
March 23, 2020
The second stage of the Federal Government’s Stimulus Package holds the first acknowledgement that the $40 a day paid to job seekers under the Newstart Allowance is insufficient to support a reasonable life. As part of the Package, Government will increase the Jobseeker Allowance (formerly known as Newstart), and the Youth Allowance Job Seeker payment, through the introduction of a temporary coronavirus supplement of $275 per week.
Community Industry Group welcomed the announcement, but cautioned that the fight to increase Newstart and Youthstart is not over. The temporary payment, which will be paid to both existing and new recipients of the JobSeeker Payment and Youth Allowance jobseeker, as well as to recipients of Parenting Payment, Farm Household Allowance and Special Benefit will only be in place for the next six months.
“There is no doubt that effectively doubling Newstart and Youth Allowance for six months will make an enormous difference to people who are struggling to manage on $40 a day,” said Community Industry Group CEO, Nicky Sloan, “and with job losses expected as a result of the Covid-19 crisis, it will undoubtedly help prevent more people from falling into the poverty trap.”
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