The unemployment benefit will be permanently lifted by $25 a week when the emergency coronavirus supplement is pulled in March.
Prime Minister Scott Morrison’s announcement on Tuesday means the base rate for JobSeeker will rise modestly to $615 a fortnight – or $43 a day – from April 1.
Recipients of JobSeeker and Youth Allowance will also be able to earn $150 more a fortnight before their payment is reduced, a measure the government says will increase the incentive to look for work and take shifts available.
The increase will cost the government $9 billion a year.
Mutual obligations – tasks like appointments with a job provider or job applications – will also be re-introduced at the levels required of job seekers before the pandemic.