Mutual obligations for Australians on welfare paused until June due to coronavirus

Job hunting requirements for welfare recipients have been further suspended until the start of June because of the coronavirus pandemic.

Hundreds of people queue outside a Centrelink in Melbourne amid the coronavirus pandemic.

Hundreds queue outside a Centrelink in Melbourne amid the coronavirus pandemic. Experts say the economic situation will cause deep anxiety for many. Source: Getty Images

Welfare recipients have been given until at least the start of June before they need to hunt for work under extended coronavirus relief measures.

Mutual obligation requirements, such as job interviews, have been suspended again until 1 June.

Employment Minister Michaelia Cash says any further extensions will depend on Treasury figures and ongoing impacts of restrictions in place to curb the coronavirus.
Employment Minister Michaelia Cash.
Employment Minister Michaelia Cash announced the suspension of mutual obligations on Thursday. Source: AAP
Senator Cash says mutual obligations will be reintroduced in stages.

"In the first stage there will be no penalties or suspensions applied," she told reporters in Canberra on Thursday.

"This should give people confidence that they can pick up the phone, talk to their provider.

"But if they don't get around to doing that, or there are reasons they are unable to do that, no suspension or penalty will apply."
Greens senator Rachel Siewert says the system will be overwhelmed when mutual obligations begin again, given the coronavirus pandemic has forced hundreds of thousands of people onto welfare.

She's calling for the requirements to be paused for six months and to move away from a punitive approach to one where there are incentives for employment providers.

"Now is the ideal time to reset how we support jobseekers," she said.

"We must move to a supportive model that meets people's needs and focuses on supporting people, rather than punishing them because they can't find jobs that are not there."
Scott Morrison
Prime Minister Scott Morrison said the unemployment figures were shocking but Australia was well placed to bounce back. Source: AAP
Meanwhile, Prime Minister Scott Morrison on Thursday announced almost 600,000 workers lost their jobs as economics conditions worsened in April. 

"Almost 600,000 Australians losing work can disappoint that hope, it can break hearts," he told reporters on Thursday.

"But it's important as a country that we stand firm and stand together."
Treasurer Josh Frydenberg said it was a "tough day" but the government was prepared for the bad news.

"Today's unemployment numbers reveal the real and painful economic impact of the coronavirus," he told reporters on Thursday.

"This reiterates why our financial commitments to respond to the coronavirus were and are so important."

Mr Frydenberg said Treasury figures showed the unemployment rate could still peak as high as 10 per cent. 

Australian Bureau of Statistics figures released on Thursday showed the unemployment rate rose one percentage point to 6.2 per cent, as 593,300 people lost their jobs in April as a result of the coronavirus pandemic.

Underemployment was up 4.9 percentage points to 13.7 per cent, while the participation rate - the number of people working or looking for work - was down 2.4 points to 63.5 per cent.

People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits.

Testing for coronavirus is now widely available across Australia. If you are experiencing cold or flu symptoms, arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.

The federal government's coronavirus tracing app COVIDSafe is available for download from your phone's app store.

SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments. News and information is available in 63 languages at sbs.com.au/coronavirus


Share
3 min read

Published

Updated



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world
Mutual obligations for Australians on welfare paused until June due to coronavirus | SBS News