The prospect of the unemployment payment reducing by $300 a fortnight at the end of September and no answer about its rate in 2021 is causing fear among unemployed people in the nation's capital, who face a high standard of living and a complex job market.
On Tuesday the government announced the coronavirus supplement paid to those on the JobSeeker payment and other welfare payments will be reduced to $250 a fortnight at the end of September, and further decisions will be made about its level before the end of the year.
This week's announcement is due to expire at the end of the year.
While Canberra has a lower unemployment rate than other parts of the country and is often regarded as a wealthy city, it is a hard place to be for people who don't have an income.
Twenty-five year old David Cribb has been unemployed since he finished his Arts-Law double degree in mid 2018, meaning he has experienced both the previous $40 a day payment, and the current payment of double the rate, which he says has hugely improved his quality of life.
"I can buy fresh fruit. I think I bought cheese for the first time in like two years, buying new clothes for the first time in like two years," he said.
"I've been sleeping better, I've been exercising more, I feel healthier than I have at any time in the last two years - just because so much of that comes from either that constant stress or anxiety that comes from dealing with these welfare systems."
"[Then] I was going for retail and hospitality jobs but I couldn't get them as I didn't have experience."
For Mr Cribb, the reduction of the JobSeeker payment and the reintroduction of mutual obligations will have a "massive'' effect.
"That means not being able to buy fresh food, worrying about rent, all of the living expenses become a bit harder," he said.
ACT Council of Social Service Emma Campbell said she was dismayed by Tuesday's announcement.
"We are really disappointed that there is not a permanent increase to JobSeeker. This means that come December there are many people who are gong to be incredibly anxious that this rate is going to return to $40 a day," she said
"The COVID supplement was an acknowledgement that it was not enough for people to live on and that's why we need a permanent increase. The numbers of people looking for work are going to increase and people need to have a proper safety net."
Dr Campbell said there are four job seekers for every available job in the ACT, a lower rate than the national average, but that the Canberra job market often required people to re-skill or re-train for the jobs available.
The government has also announced a gradual return to mutual obligations, with job seekers required to apply for four jobs a month. Mr Cribb said he and job seekers he represents through the Unemployed Workers Union were worried about the return of the Work for the Dole program.
"People are very worried about that because [work for the dole] sites weren't safe before coronavirus and there's no way they are going to be safe and well adapted to new challenges."
Regarding job application quotas, Mr Cribb believes it's an arbitrary stress on job seekers and businesses alike.
"The fundamental issue is that there aren't enough jobs," he said.
"I think the government figure is ten people for every job - but if you factor in people who are underemployed or people who have dropped out of the labor market that can be as high as 20 people for every available job."
In December 2019 there were 6,551 people in the ACT receiving the former Newstart payment and the Youth Allowance payment for those looking for work. That number increased by 124 per cent by June, when 14,652 people were receiving the payments.
The ACT unemployment rate in June was 5.1 per cent, below the national level but 2.2 per cent higher than it was a year ago. In the three months to May this year, job vacancies dropped 46.2 per cent, to just 3600.
For those who believe keeping JobSeeker as it is will deter people from the labour market, Mr Cribb said that many people underestimate the amount of work welfare recipients need to do to retain payments.
"The current payment is not generous, to say this current payment is above the poverty line is not to say it's comfortable - it's still incredibly difficult to live on this payment," he said.
"If a payment that is below the minimum wage is discouraging people from working then jobs aren't offering people a minimum wage or a living wage."
