Scott Morrison says unemployed Australians are refusing to work because JobSeeker benefits are too high

• Morrison warned if welfare is too high people won't have any incentive to work
• JobSeeker payments were doubled from $275 to $550-a-week in the pandemic
• He said bosses complained if welfare is too generous then employees don't work
• It comes after the government denied JobSeeker would be lifted by $75 a week

Scott Morrison has claimed unemployed Australians are refusing to work because  JobSeeker's $550-a-week benefits are too high.

JobSeeker payments, formerly known as the Newstart allowance, were doubled from $275-a-week amid the coronavirus pandemic.

But the prime minister has warned if the welfare payments are too high, people won't have any incentive to find work.

Mr Morrison on Monday said some bosses complained that if the welfare amount is too generous then employees don't want to take up extra shifts. 

'Well, on JobSeeker, we doubled the payment with the supplement because we knew unemployment was going to be rising steadily and it has and that's been devastating,' he told 2GB radio.

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Scott Morrison has claimed unemployed Australians are refusing to work because JobSeeker's $550-a-week benefits are too high

'What we have to be worried about now is that we can't allow the JobSeeker payment to become an impediment to people going out and doing work, getting extra shifts.

'And we are getting a lot of anecdotal feedback from small businesses, even large businesses where some of them are finding it hard to get people to come and take the shifts because they're on these higher levels of payment.'

Mr Morrison said the government had to be careful when supporting people who have lost their jobs due to the pandemic and have little chance of getting another temporary job.   

'And so we've just got to make sure that we continue to provide what is a reasonable level of support in the middle of the worst recession we've had since the Great Depression,' he said.

'But at the same time, we can't let the help get in the way that we're giving to people. And so these aren't easy decisions. They're very complex.'

Mr Morrison is also concerned the government is 'burning through' almost $11 billion a month on JobKeeper wage subsidies.

He is looking to redirect support towards industries hardest hit by coronavirus and withdraw it from companies quicker to recover.

'There's still a lot of work to do there and that's what we're focused on,' Mr Morrison told reporters in Sydney.

'There are many moving parts in this, this is not a simple issue.'

The prime minister will receive a Treasury report on the coronavirus payments on Monday evening but will wait another month before making any changes.

Labor has accused the prime minister of sitting on the Treasury report until after the upcoming by-election in Eden-Monaro.

It has called on him to end the 'chaos and confusion' before voters go to the polls on Saturday.

Mr Morrison has promised there will be a next phase of economic support, but says a series of complex decisions need to be made.

There are growing calls to expand access to the pandemic payments and sustain them beyond September.

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JobSeeker payments, formerly known as the Newstart allowance, were doubled from $275-a-week amid the coronavirus pandemic 

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Mr Morrison is also concerned the government is 'burning through' almost $11 billion a month on JobKeeper wage subsidies

The Grattan Institute wants JobSeeker permanently increased by at least $100 a week, provided to more people and tied to wages.

The think-tank also wants JobKeeper extended into next year and expanded to ineligible arts, university and tourism workers.

The institute has warned against withdrawing fiscal support too soon, echoing an early caution from the International Monetary Fund.

Instead, it has recommended the federal government spend between $70 billion and $90 billion on extra economic stimulus measures, including cash cheques sent directly to households.

Grattan also encouraged the government to introduce a higher, simpler, means-tested childcare subsidy that would cover 95 per cent of costs for low-income families.

A separate report by analytics firms illion and AlphaBeta has found low income earners have carried the economy through the crisis.

The data showed people earning less than $65,000 a year kept the economy propped up through discretionary and essential spending.

By contrast, the economic advisory group found high income earners had kept their wallets sealed since the start of March.

A new Australian Bureau of Statistics survey shows Australians are slowly getting back to work as coronavirus lockdowns ease.

Sixty one per cent of Australian adults had a job working paid hours in June, the highest rate since early March.