Thousands of millionaires have been able to reap the benefits of the Australian government’s JobSeeker payment during the coronaviurs pandemic.
Prime Minister Scott Morrison outlined the subsidy in March when the pandemic was first kicking off.
It allowed anyone who lost their job as a result of Covid-19 and needed financial assistance to get $1,115 a fortnight. However, due to a loophole in the system, it has permitted loads of people with deep pockets to access it as well.
Figures obtained by news.com.au have revealed that 3,600 millionaires have been using the subsidy.
The government ditched the assets test for JobSeeker, meaning that even if someone had cash, cars, homes, boats or other expensive items in excess of $1 million, they would still be eligible for the payment.
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These people will be kicked off the subsidy from this Friday.
Social Services Minister Anne Ruston said: “The assets test is designed so working-age people with substantial assets – on top of their principal home and superannuation – use their own means to meet their living expenses before calling on taxpayers for support.
“Means testing is a longstanding principle of the income support system because it ensures payments are targeted to those who need them most and helps ensure the taxpayer-funded system is sustainable into the future.”
The assets test will be reintroduced to make sure that people who are genuinely financially struggling will get access to the welfare.
From Friday, singles who own their own home will only be able to have $268,000 worth of additional assets to access JobSeeker, while singles who do not own their own home are allowed up to $482,500 in assets to still access payments.
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