People who lose their jobs would get up to 70 per cent of their former income for a short period under an insurance scheme being examined by the Morrison government as part of a possible overhaul of the JobSeeker system, the Sydney Morning Herald reports.
In a plan that would bring Australia into line with almost every other rich nation in the world, those unable to find work within six months would revert to the current $40-a-day JobSeeker payment.
Proponents of the unemployment insurance scheme argue it would be a massive financial incentive for people to gain fresh employment.
The government is set to overhaul the JobSeeker scheme when the current COVID supplement, worth $150-a-fortnight, ends on March 31.
Ministers have signalled JobSeeker will not revert to its pre-pandemic level of $565-a-fortnight amid pressure from unions, economists, social services and business groups and even the Reserve Bank.
But there is debate on the new rate and if it will form part of a broader overhaul of all welfare payments. There are expected to be more than 1.5 million people affected by the end of the COVID supplement.
Research by the Blueprint Institute, headed by former Treasury economist Steven Hamilton, shows insurance schemes that reduce benefits over time get people back into work faster and with higher wages than flat-rate systems.
Unemployment insurance scheme floated as part of JobSeeker overhaul (Sydney Morning Herald)