A parliamentary inquiry examining the proposed JobSeeker support extension has been told increasing the rate will not act as a disincentive to people getting back into work.
Welfare groups also appeared at the inquiry, calling for a permanent increase to welfare support.
The Federal Government announced from January 1, it would reduce the fortnightly JobSeeker supplement payment to $150 per fortnight. The current base rate is $565.70 a fortnight.
This means recipients will have their overall fortnightly payment cut to $715 per fortnight.
The Australian Council of Social Services, is lobbying for a permanent increase.
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