The changes to the COVID supplement
Prime Minister Scott Morrison has announced a three-month extension to the COVID-19 supplement, which now ends on 31 March 2021.
The PM announced the payment would be cut from $250 to $150 a fortnight from December 31. The extension will cost $3.2bn.
WHAT IS THE COVID SUPPLEMENT?
The COVID supplement is a fortnightly payment that is added to a number of income support payments.
It's given automatically to people who receive a number of income support payments at the same time as their regular payments.
WHO RECEIVES THE COVID SUPPLEMENT?
If you're receiving one of these payments, you're also receiving the COVID supplement.
JobSeeker Payment
Partner Allowance
Widow Allowance
Youth Allowance
Austudy
ABSTUDY
Living Allowance
Parenting Payment
Farm Household Allowance
Special Benefit
MUTUAL OBLIGATIONS REQUIREMENTS
Since the last update to the COVID supplement in September, Australians on Jobseeker have had to comply with mutual obligations requirements - meaning they must demonstrate they are actively seeking work in order to keep receiving the payments.
The Guardian reports that, between August and October, 260,000 jobseeker payments were suspended because people did not meet the mutual obligation requirements.
IS THE COVID SUPPLEMENT MAKING UNEMPLOYED AUSTRALIANS TURN DOWN WORK?
The key debate in this afternoon's Federal Parliament Question Time was over the contention that high levels of income support (including the COVID supplement) were acting as an impediment to employment, as Australians were comfortable on their government support packages.
Morrison said that he has evidence of this "from so many employers around the country who are seeking people to go into jobs".
WHAT DOES THE DATA TELL US?
According to the RBA, unemployment will peak before the end of the year at about 7.8%, with unemployment rates not expected to drop substantially until 2022.
The Australian Council of Social Services reports 13 jobseekers for every vacancy in the job market.