There are concerns Tasmanians currently reliant on the Federal government's boosted JobSeeker rate, formerly Newstart, and the JobKeeper scheme will be left worse off when the payments end.
Both are set to expire in September, however the child care sector will be exiting the JobKeeper scheme early with payments to cease from July 20.
Anglicare Tasmania chief executive Chris Jones said he was worried those on low incomes may have over-committed or stretched themselves while receiving the boosted JobSeeker payment.
"A lot of people who are on low incomes spend what they've got," Dr Jones said.
Dr Jones said it was important people who realise they cannot afford things reach out as soon as possible for financial counselling, such as through the service offered by Anglicare.
"All of us could use lessons around budgeting, it's true, but I think it's particularly difficult for those on low incomes because there's not the same flexibility that someone may have because of their job.
"We are really concerned about people on low incomes not being able to budget because the payments are just too low."
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Dr Jones said the JobSeeker payment should be kept at the current level of $1100 per fortnight to ensure people looking for work could maintain a stable place to live.
"What we learned when we did our Rental Affordability Snapshot is that there weren't properties that were affordable for people on the old Newstart allowance," he said.
He said the ending of the JobKeeper payment needed to be tapered as opposed to a hard cut-off date in September.
"It actually has to be industry by industry. Some industries will pick up quicker than others," he said.
Dr Jones said if the payments were both cut off at once he expected Anglicare would see more people in rental crisis and families in distress.
TasCOSS acting chief executive Simone Zell said the boosted rate of JobSeeker was integral to supporting Tasmania's population as it recovered from COVID-19.
"We cannot go back to the cruelty of forcing people to try to live on $40 a day and the insidious choices that living well below the poverty line brings," Ms Zell said.
"No one should ever again be forced to choose between feeding their family or keeping their home warm enough to sleep in."
Ms Zell said the Federal government needed to commit to maintaining the current rate of JobSeeker into the long-term to allow Tasmanians to meet their basic needs while they actively sought employment in the post-COVID-19 economy.
"Support such as the current rate of JobSeeker, the JobKeeper program, rent freezes and a moratorium on evictions must not be hastily removed, so that those who find themselves out of work post-COVID-19 are able to actively participate both socially and economically and contribute to the rebuilding of our communities," she said.
Tasmanian Small Business Council chief executive Robert Mallett said the impact of removing the JobKeeper payment in September would depend on where Tasmania was at with social and workplace distancing in the spring.
"If we have to maintain that [distancing] in that case it would be disaster if JobKeeper finishes because there are many businesses where it is basically illegal for them to operate at capacity," Mr Mallett said.
"Until such time where every business is allowed to operate at capacity, there needs to be some protection or some support.
"But in the event that there are no restrictions on that I think the support can go at the time that's appointed."
Mr Mallett said the one area of concern was businesses reliant on tourism, such as hotels or restaurants, which fed into the broader question about whether the state should reopen its borders.
He said there would be work for the unemployed, for example casual workers who were ineligible for JobKeeper if they had not been with their employer for 12 months, when restrictions on businesses were lifted.
"Most small businesses were struggling to find good staff in the good times before - there's no reason by September or October they won't still be struggling to find good staff," he said.
"Those people who were in work will be back in work even if they were unemployed for a short period of time now."