Christmas JobSeeker snapback to rip $8.5B from retail sector
The scheduled snapback of the JobSeeker payment after December will rip the equivalent of $326.9 million per fortnight from the retail sector, or the equivalent of $8.5 billion per year.
According to the Department of Social Services,* over 2.2 million Australians on working-age payments – including 1.6 million on JobSeeker and Youth Allowance (other) – are currently receiving the Coronavirus supplement.
Social security recipients spend an estimated 58 per cent of their payments on retail goods or services.**
Based on these spending habits, out-of-work Australians will spend $326.9 million per fortnight from their Coronavirus supplement from September at grocery stores, supermarkets, convenience stores, bakeries and other local small businesses.
The retail sector employs an estimated 1.2 million Australians – or one in ten Australian workers.***
The JobSeeker and other working age payments are scheduled to return to the old base rate of $40 per day after December, making for a very difficult and anxious Christmas and holiday period for millions of Australians.
That it will snapback during the Christmas holiday period will just add insult to injury for millions of out-of-work Australians as well as small and medium businesses for whom Christmas is a crucial time in the retail calendar.
The Morrison Government should give Australians certainty by committing to a permanent increase to the base rate of JobSeeker at its budget in October.
The Prime Minister’s scheduled December JobSeeker snapback will rip the equivalent of $326.9 million per fortnight from the retail sector, including many local and small businesses.
It also threatens the jobs and livelihoods of millions of Australians who work in the retail sector.
The Prime Minister could give certainty – not only to Australians receiving social security payments during this difficult period – but to the many small and medium business enterprises employing Australia’s retail workers.
The Prime Minister’s scheduled December JobSeeker snapback just goes to show he has no plan for jobs.
*Answer to question on notice, Senate Select Committee on COVID-19, no. 223 - the Corona Supplement is payable on ABSTUDY, Austudy, JobSeeker, Parenting Payment Partnered and Single, Special Benefit, Widow Allowance and Youth Allowance (Other and Students).
**Types of merchants by Cashless Debit Card expenditure – Department of Social Services response to FOI Request 19/20-028
***Labour Market Information Portal
MONDAY, 10 AUGUST 2020