Reverting the JobSeeker allowance back to pre-COVID levels would be 'more than disappointing,' says federal Liberal Bass MHR Bridget Archer.
Ms Archer made the comments while confirming reports that the government is considering increasing the rate of JobSeeker above pre-COVID levels permanently.
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"Everything is on the table at the moment and I have been advocating for some time now for that to occur," she said.
She said it would be unreasonable to assume the rate would stay at double pre-COVID levels but an increase needs to be made permanent.
"I don't think it would be reasonable to go back to the pre-COVID rate," Ms Archer said.
"From my experience, for a lot of people I have spoken to, it is very, very hard to live on [the pre-COVID] amount and it is difficult to live on that amount and still be able to be job ready."
Salvation Army public relations officer Brad Watson said before the rate was doubled due to COVID-19 people were living below the poverty line.
"The rate that the previous Newstart allowance was set on was not sufficient for people to actually live on," he said.
"There is a definite need, at whatever level it turns out to be, for the rate to be significantly higher than it was before."
He said the organisation had already seen an increase in Tasmanians seeking support and reducing the rate of JobSeeker would leave many people in 'dire straights.'
Tasmanian Council of Social Services chief executive officer Adrienne Picone said maintaining the boosted rate would help restore public trust.
"Robodebt has created a culture of fear and dread around our social safety net that has driven people away from support when they need it most," she said.
"By maintaining the boosted rate of JobSeeker the federal government will demonstrate it respects the need for Australian job seekers to be able to afford basics like food and rent."
Anglicare chief executive officer Dr Chris Rogers said their organisation would also like to see the rate increase permanently.
He said the increase would help combat unemployment and would allow people to look for a job without struggling to survive.