Stoush brewing over unemployment benefit

The Morrison government is remaining tight-lipped on the future of unemployment benefits with boosted rates due to expire in less than two months.

Social service advocates and business lobby groups are wrangling over the ongoing JobSeeker rate beyond March 31.

The $150 coronavirus supplement takes the current rate of the dole to around $715 a fortnight.

The Australian Council of Social Service wants a permanent rise of at least $25 a day more than the old Newstart rate of $40 a day.

The Australian Chamber of Commerce and Industry is pushing for a return of the old rate for people unemployed for less than a year.

Under the proposal, the $150 fortnightly supplement would be retained for people out of work for more than a year.

Finance Minister Simon Birmingham said the boosted amount had strengthened the economy and helped recipients during the depths of the pandemic.

“It’s one of the factors that’s given Australians such huge retained savings at present,” he told ABC radio on Tuesday.

“But there are many stories out there of employers struggling to get people to take jobs that are vacant.”

The government insists it will take an evidence-based approach to setting the JobSeeker rate after March 31.

Labor advocates a permanent increase in unemployment benefits but refuses to nominate a figure.

The opposition is set to pressure the coalition over JobSeeker and JobKeeper wage subsidies when parliament kicks off for the year on Tuesday.

Labor leader Anthony Albanese has called for targeted support for sectors like tourism that will continue to struggle beyond March.

“It’s easier to keep jobs and businesses going than it is to see them collapse and then try and restart again,” he said.

Tourism Minister Dan Tehan said domestic tourism was showing a quite strong rebound, but targeted and temporary support was being considered.

“We’ll have more to say on this in coming weeks and months.”

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