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Discussion paper

As part of the Morrison Government’s economic response to the coronavirus pandemic, it announced that it would provide an additional payment to unemployed people called the coronavirus supplement. This supplement was initially paid at a rate of $500 per fortnight. The impact of this change was a reduction in the number of people in poverty by 425,000.

On the 21st July 2020 the federal government announced it would reduce the rate of the coronavirus supplement from $500 to $250 per fortnight. This change began in September 2020.

On the 10th November 2020, the federal government announced that it was again cutting the coronavirus supplement from its rate of $250 per fortnight to $150 per fortnight. This is due to come into effect in January 2021. This paper looks at the impact this reduction will have on the number of people living in poverty, including the number of children.

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