Bass Liberal MHR Bridget Archer says it could be difficult for the government to "simply turn off" the $550 coronavirus supplement for JobSeeker and Youth Allowance recipients at the end of September.
Ms Archer said she was in favour of "a more progressive approach".
"I have consistently been on the record as saying that I want to see structural reform of our social services system," she said.
MORE ON THE $550 CORONAVIRUS SUPPLEMENT:
"With a significant number of Australians looking to be out of work, possibly for an extended time due to COVID-19, I believe it is an opportunity to look at overhauling social services, including examining the rate of JobSeeker (formerly Newstart).
"As I've always said, the rate of JobSeeker is only part of the puzzle and we still need to provide additional measures to support job seekers."
Tasmanian senator Jacqui Lambie this week said she was in favour of retaining the $550 supplement - an effective doubling of JobSeeker and Youth Allowance - beyond the end of the pandemic.
Labor is yet to take a position, however left faction Bendigo MHR Lisa Chesters was the first Labor MP to back retaining the supplement. Tasmanian Labor MPs took a more cautious approach, instead supporting their pre-election commitment to a review of the entire welfare system with a view to raising the rate.