Morrison government announces return to mutual obligation for jobseekers

Michaelia Cash says there will be a three-phase restart of welfare requirements

The federal government has announced a “limited capacity” return to mutual obligation requirements for Australia’s welfare recipients from next week.

The employment minister, Michaelia Cash, announced mid-May that mutual obligations for jobseekers, which had been put on pause at the beginning of the coronavirus crisis, would be further suspended until 1 June, after which a three-phase reintroduction would commence.

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Coalition expects coronavirus to send Australia’s unemployment soaring to 10%

Josh Frydenberg says jobkeeper payment to help businesses keep staff on during lockdown has kept jobless rate from hitting 15%

The federal government is bracing for 10% unemployment when jobless figures for the June quarter are released, almost twice the level of 5.1% recorded in February before the fight against the coronavirus closed businesses and pushed workers out of jobs.

But the government is already is arguing the jobs disaster for the three months to June could have been more like 15%. The only thing stopping this was the $130bn jobkeeper scheme passed by parliament last week to subsidise the wages of staff kept in employment.

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