Scott Morrison has dashed hopes of the jobless allowance remaining at double its usual rate after the coronavirus crisis subsides.
More than half a million Australians have signed up to the government's JobSeeker unemployment benefit during the pandemic.
The payment is usually $40 a day but has been doubled for the next six months.
The prime minister has indicated he is not interested in extending the timeframe despite the fact many sacked employees will still be struggling to find work.
"We put a COVID supplement in place for the period of the pandemic and that's what we've budgeted for and that's what our policy is," Mr Morrison told reporters in Canberra on Thursday.
Greens senator Rachel Siewert said she was gobmacked by the thought of reducing the JobSeeker rate, arguing it would condemn more than a million people to a life of poverty.
"The cruelty of low income support rates has been laid bare by this pandemic," she said.
"How can it be government policy for people to live below the poverty line?
"An increase to the Jobseeker payment must be long term and permanent."
Australian Associated Press
