Modelling commissioned by The Australia Institute shows the impact on poverty that the coronavirus supplement has had and what will happen if it is removed completely at the end of September. It will also look at the impact on poverty if the supplement of $275 per week is replaced by an increase in the base rate of $75 per week.

The introduction of the coronavirus supplement did an enormous amount to reduce poverty in Australia. With that single change 425,000 people were lifted out of poverty. However, the supplement has a legislated end date on the 24th of September 2020.

The recession brought on by the pandemic has already increased unemployment by two per cent and it is expected to increase further before the end of September. If the supplement is removed in September, as legislated, this would result in more than 650,000 people will be pushed into poverty.