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Morrison's government has denied that it is about to permanently suspend unemployment benefits when the treasurer makes a long-awaited economic statement next month.

News Corp. newspapers, citing senior ministers, reported that the pay for job seekers would rise to $ 75 a day from $ 40 when the current enhanced version of the unemployment payment ends in September.


"There are no such proposals before the government or under consideration for the economic declaration next month," a spokeswoman for social services minister Anne Ruston told the Australian Associated Press.

"The government is focused on the next phase of short-term measures designed to address the Covid-19 crisis."

The job seeker's pay, formerly known as Newstart, doubled to about $ 1,100 a fortnight as a support measure during the pandemic.


The Treasury is analyzing the jobseeker and the salary subsidy.

Tanya Plibersek, leader of the Labor Party, said people who were forced to receive the donation because of the coronavirus pandemic were shocked if the job seeker's payment returned to its pre-crisis rate of $ 40 a day.


"It is an inadequate payment, it does not allow people to live with dignity," she told Sky News Sunday's program.

"Now, we have hundreds of thousands of extra people joining the distribution queue, people who work full time until very recently and who would face difficulties if what is now called a job seeker returns to the old Newstart rate."

The coalition government has long argued against increasing unemployment pay, which has not increased for 25 years in addition to the indexation increases.

There is broad support for an increase in Labor, Greens, social assistance groups, business organizations like the Australian Business Council and the Australian Industry Group, economists and the Reserve Bank.


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