Government reveals those made redundant due to coronavirus will receive more cash than Newstarters. Source: Getty

Australians on Newstart have voiced their outrage as the government flags it will offer hundreds of thousands of workers facing joblessness due to the coronavirus crisis access to a temporary wage - one that will be set at a higher rate than what welfare recipients are currently offered.

Single Aussies with no children on Newstart receive $559 per fortnight, which increases to $604.70 for singles with children.

To put this into perspective, the median full-time wage in Australia is $68,000, and the Newstart safety net equates to less than $14,500.

Newstart recipients will receive a one-off payment of $750 under the government’s $17.6 billion stimulus package, but while the government believed the payment would be a “necessary relief”, vulnerable Australians say it’s simply not enough.

“Had to pay my electricity this week which makes it even harder to afford to eat every day on Newstart – let alone stockpile for corona,” welfare recipient Jeremy Poxon tweeted.

Had to pay my electricity this week which makes it even harder to afford to eat every day on Newstart — let alone stockpile for corona. We need to #RaiseNewstartForAll https://t.co/jy51fxVNQ9 — jeremy poxon (@JeremyPoxon) March 19, 2020

Now, the government’s transitional income support, which is expected to be announced in the coming days as part of its second stimulus package, has outraged vulnerable Australians.

“So now we’ll have two classes of unemployed. Why not increase Newstart and give everyone a fighting chance?” one user tweeted.

“Amazing how concern for how low Newstart is has been used not to increase Newstart, but to ensure the Deserving Unemployed people get a better deal,” another added.

Others felt the government was sending a clear message that those receiving welfare are simply dole bludgers.

“This broke me. I'm on newstart after being on disability for mental health issues and I'm so very very tired of fighting to feel okay, when the government, job agencies and a lot of society think I'm an undeserving waste of money,” one user tweeted.

“Let me get this straight...People who lose their jobs on account of the #COVID2019 are worthy of a higher dole than people who lose their jobs in other circumstances?” another said.

Mutual obligations still in place

With the Prime Minister urging Australians to stay home where possible and practice social distancing, jobseekers on Newstart have been left in the lurch as to whether they are still required to meet their mutual obligations.

These mutual obligations mean jobseekers must attend in-person meetings with their jobactive providers at their local Centrelink office to ensure they are still applying for work in order to receive their payments.

Some Newstart recipients have reported they have been alerted that their mutual obligations have been suspended, while others have not.

Local members have written to Employment Minister Michaelia Cash to request a blanket exemption of these requirements for recipients over 60 or for those who have documented existing medical conditions.

Cashless card-holders have payments ‘quarantined’

Welfare recipients on the Indue cashless debit card have been told their $750 payments from the government’s stimulus package will effectively see their money in quarantine.

“Cashless Debit Card participants will receive the $750 Economic Support Payment as a lump sum payment onto their card, consistent with arrangements for lump sum payments such as Family Tax Benefit lump sum payments,” a Department of Social Services spokesperson told The Guardian.

The decision to do so has been slammed by welfare group ACOSS, dubbing it “beyond belief”.

“People need maximum flexibility about how they can purchase essential items at this time,” Cassandra Goldie, chief executive of the Australian Council of Social Service stated.

“We urge the government to pay the stimulus payments into people’s regular bank accounts. They should not be quarantined through cashless debit or income management, especially at a time of crisis.”

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