Bass Liberal MHR Bridget Archer hopes the announcement of a permanent JobSeeker rate does not end the conversation about Australia's unemployment system as she continues to call for greater reform.
From April 1, the base rate of JobSeeker will return to $50 above its pre-COVID level - an amount widely considered below the poverty line in Australia.
Ms Archer was one of the few in her party calling for both an increase to JobSeeker from pre-COVID levels and reform to the mutual obligation and jobactive systems.
She said seeing it increase from its former level was "a step in the right direction".
"However I believe there is still much more work to do," Ms Archer said.
"It is simplistic to see mutual obligation as the solution to addressing unemployment.
"Greater focus needs to be given to additional supports for a range of other challenges ... disadvantage, trauma, access and availability of childcare are just some of those."
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While the increase did answer Ms Archer's call for the rate to stay above pre-COVID levels, she said it was "difficult" to know what the "right" rate should be.
The JobSeeker rate will need to be legislated, and so will be subject to a vote in Parliament. Last year, Ms Archer received criticism for abstaining from the cashless welfare card vote, with it passing by one vote.
She would not be drawn on how she would vote once JobSeeker comes before Parliament.
There are 30,421 Tasmanians on the JobSeeker payment, with 40,300 Tasmanians looking for more work or more hours, according to the Tasmanian Council of Social Service.
Labor has not committed to a specific rate of JobSeeker, believing it was up to the government to make a decision as it had access to the "data".
Tasmanian Labor senator Helen Polley said it was at least positive to see the rate increase.
"Labor will consider the details of the legislation once it is presented, but Labor won't stand in the way of an increase - an increase is better than no increase at all," she said.
"The Morrison Government needs to explain to the community how this is enough to assist families on JobSeeker to meet the cost of living, and to assist them in finding a job."
Ms Polley urged Ms Archer to support the rate increase in Parliament.
Tasmanian Greens senate Peter Whish-Wilson was scathing of the JobSeeker rate, believing it would leave many below the poverty line.
"In a wealthy country like Australia nobody should be living below the poverty line - this is a deliberate punishment of many of our country's most disadvantaged people," he said.
"This decision is not based on evidence about what is best to support people to find work nor what is best for the economy."
TasCOSS was also disappointed at the decision.
Chief executive officer Adrienne Picone said it would be "absolutely devastating" for many Tasmanians.
"What this does is pushes thousands of Tasmanians back below the poverty line," she said.
"It has devastating consequences including homelessness [and] crushing debt.
"We are going back to that situation where people are having to make those insidious decisions about whether they can pay the rent or pay the electricity bills and eat as well."
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