The Morrison government faces questions over cuts to the JobSeeker dole payment, which Labor argues will strip $680 million a fortnight out of the economy just when it is needed.
Those out of work were hit with a cut to their dole on Friday, as the JobSeeker supplement reduced from $550 a fortnight to $250.
From Monday, the JobKeeper rate will decrease and be split into two-tiers for full-time and part-time workers.
The full rate will go from $1500 to $1200 a fortnight, while people who worked less than 20 hours a week pre-pandemic will receive just $750.
Shadow treasurer Jim Chalmers said stripping $680 million a fortnight from an economy in recession was a backwards step.
"It makes absolutely no sense for the government to be cutting support to workers, communities, businesses and local economies when the economy is still as weak as it is today," he said.
Treasurer Josh Frydenberg acknowledged the road back to recovery "will be long, bumpy and hard", but he would ensure through the October 6 federal budget that a plan was in place to boost jobs and get businesses investing.
He again hinted on Friday the government was looking at some form of extra support for the unemployed, above that which applied before the pandemic struck.
However, the decision would not be made until later in the year.
The coalition has abandoned a plan to get the budget back to surplus in the next four years, laying the ground for a $200 billion deficit and job-creating spending measures.
National economic recovery relies heavily on Victoria continuing to squash the virus.
The state recorded 14 new cases on Friday, as well as eight deaths, pushing the national toll to 869.
Victorian Premier Daniel Andrews has raised the possibility of easing restrictions earlier than planned next month with infection rates tracking ahead of schedule.
But there's not expected to be wholesale changes on Sunday when some freedoms will be restored.
Mr Andrews faced an inquiry into the state government's bungling of hotel quarantine, saying he couldn't recall who decided to staff it with private security.
The state's second wave has been traced to two Melbourne hotels, with the outbreaks linked to more than 750 deaths and triggering economically destructive lockdowns.
NSW broke its three-day streak without a coronavirus case being detected in the community.
A man in his 50s in Sydney's southwest tested positive despite not having contact with a previously confirmed case.
Queensland Chief Health Officer Jeannette Young said it appeared the infection would reset the border clock with NSW, but she would await the investigation result.
Queensland has vowed not to fully open the border with NSW until the state records 28 days without community transmission.
Australian Associated Press
