What happens when the $550 Coronavirus Supplement ends?

A report detailed by the ABC showed the results of nearly 1,000 people receiving the Coronavirus Supplement, who were asked in May about the impact it was having on their lives.

Some of the results included:

  • 83 per cent said they were eating better.
  • 75 per cent said they were able to catch up on bills.
  • 69 per cent said it was easier to pay rent, or they were considering moving to a better home.

With the extra $550 coronavirus supplement each fortnight, it would be expected that people could eat better, for those who were not able to before.

But considering moving to a better home, when this benefit is only for 6 months?

That is dangerous thinking. I wonder what did they think would happen in September when the supplement ends.

Without the supplement, the JobSeeker payment, previously called Newstart, would have been up to $705 each fortnight, including Rent Assistance ($565 + $140). That is about 77% of the poverty line.


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With the added temporary coronavirus supplement, this would have been up to $1,255 each fortnight. That is about 37% higher than the poverty line.

For most people the supplement would be a total of $7,150. (13 fortnights at $550).

When the coronavirus supplement comes to an end, presumably at the end of the six months that was stated at the beginning, those welfare recipients will have to return back to the income they had before.

I am aware of some that have been saving a large chunk of the extra, so that they can spread the total out over a period longer than 6 months.

I am also aware of others who have been buying new TVs etc.

I would hope that few, if any, would have begun renting a more expensive property, knowing that their increased income is only short term.

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