Labor has urged the government not to 'snapback' unemployment payments, arguing that cutting 'JobSeeker' by half would cost the Riverina electorate the same amount of money as losing 1800 jobs.
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"Our regions were doing it tough before this pandemic, due to drought, floods and bushfires," opposition Social Services spokeswoman Linda Burney said.
"A snapback of the JobSeeker payment to its old base rate would deliver a cruel blow to regional areas."
At the start of the coronavirus pandemic, the federal government's JobSeeker scheme effectively doubled the Centrelink Newstart allowance to $1100 a fortnight but plans to end the additional payments in September.
Labor has estimated that 8350 Riverina people are on JobSeeker payments and 1375 are on Youth Allowance, bringing an additional $4.6 million per fortnight into the electorate's economy.
Losing the additional $550 per fortnight payments would be the equivalent of the Riverina losing 1800 average-income jobs, according to that estimate.
St Vincent de Paul Wagga Central Council president Peter Burgess said unemployed people in the region "can't go back" to the old system and the charity was seeing fewer requests for help.
"Our work has reduced greatly because Newstart has basically been doubled and they have got the $750 that ScoMo promised them," Mr Burgess said.
"However, our biggest concern is that if it goes back to $40 per day, and a lot more people will be on it, I'll be honest and say Vinnies is bracing for the worst.
"Vinnies has for the past two years now run a campaign to increase Newstart...because people can't live on $40 per day."
The Daily Advertiser has been told by a Wagga retail business owner that the JobSeeker payments should be reduced because they suspected it was contributing to lower numbers of application for jobs compared to before the pandemic.
Riverina MP and Deputy Prime Minister Michael McCormack said the government's support measures were temporary and it was closely monitoring the economic effects of the pandemic.
"The focus of the federal government has always been on getting Australians through the health and economic consequences of the COVID-19 pandemic," Mr McCormack said.
"We have been consistent that the measures taken to get through this tough time are temporary, however, we will continue to monitor the ever-changing situation and will take the appropriate steps where necessary. We are acting decisively as a responsible government to get all Australians through this unprecedented crisis."
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The government has also this week started distributing its second round of $750 Economic Support Payments to aged pensioners, carers and people on the Disability Support Pension.
"The Government is focused on the next phase of short-term measures designed to address the COVID-19 crisis in a targeted and scalable manner," Mr McCormack said.
"These measures, including the $750 Economic Support Payments, are helping to ensure thousands in the Riverina and Central West receive the support they need to get through these difficult circumstances."