Unions Tasmania has described the $22.9 billion coronavirus stimulus package as "woefully inadequate" and TasCOSS says much more is needed.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Tasmanian business has welcomed the package - which will benefit about 190,000 Tasmanians - but wants government to provide more information on how to support employees and ensure their safety.
Leading economist Saul Eslake said it was an "appropriate response" but the risk was some Tasmanians would not spend the $750 to be paid to people on pensions and receiving support.
Unions Tasmania secretary Jessica Munday said making Newstart available to some workers was not enough.
"The payment is already a poverty payment, it won't go anywhere near covering lost wages," Ms Munday said.
"It will not remove the tough choice between going to work sick or not being able to pay your bills.
"The cash splash to business relies on them trickling those dollars down to workers, something worker's experience tells us never happens."
TasCOSS acting chief executive Nic McBride said the $750 one-off payment for people accessing Newstart would quickly be spent on essentials such as food, rent, transport costs and other essentials.
"The insidious choices that come with living on the most meagre of incomes, such as the choice between heating and eating, are evidence of a social security system that has not kept pace with rising cost of living pressures," Ms McBride said.
"We must do more in the medium to long-term for Tasmanians who are increasingly finding themselves in the lurch with insufficient or no paid work."
Tasmanian Chamber of Commerce and Industry chief operations officer Colleen Reardon welcomed the stimulus package and also details of the State Government's support package.
"It's vital that federal, state and local governments support businesses as much as possible through these challenging circumstances," Ms Reardon said.
"In addition to measures to help cashflow and confidence in the economy, we are also calling on the State and Federal Government to ensure businesses have up-to-date, accurate and relevant information available to them about how to support employees and ensure staff and customer safety."
Mr Eslake said if necessary there was scope to do more in the federal budget in May.
"Hopefully people will spend it like they did 12 years ago but the risk is they will not go out and spend the $750," he said.
"It is particularly appropriate to assist small and medium businesses with apprentices because if there is another recession they will be most vulnerable."
Mr Eslake said he hoped Tasmania would get help as part of the $1 billion for the regions.
Tasmanian Liberal senator Jonathon Duniam said every measure in the package went to supporting Tasmanians.
He said the package had been well received but there was more work to do in relation to the $1 billion fund which will deal with sectors severely impacted, such as tourism and fishery.
Senator Duniam said the one-off cash payment to those on income support would help more people than raising Newstart.
"There are around 21,000 Tasmanians on Newstart. There are around 190,000 Tasmanians receiving some sort of income assistance," Senator Duniam said.
"With this stimulus package around 190,000, nearly 10 times as many, people will benefit."