Advocates were pushing for a permanent increase to the Jobseeker payment, with the temporary coronavirus supplement dropping from $550 a fortnight to $250 at the end of last month. The supplement is set to disappear completely in December.

Newcastle Poverty Action Alliance convener Chris Parish said last month's change had plunged the payment below the poverty line, which is $445.40 a week, according to Melbourne Institute of Applied Economic and Social Research. He said the $550 supplement had helped people cover expenses that they struggled to before.

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Mr Parish said the supplement had helped people on welfare cover rent, bills, food and other expenses they had struggled to before.

"People from social welfare organisations know the improvements they have seen with their clients," Mr Parish said. "It's made a lot of difference to a lot of people's lives.

"There's talk that JobSeeker may be reviewed in December, but given the budget it seems the government is committed to a reduction which will impact thousands of people in Newcastle."

Mr Parish commended the tax cuts for low income workers, but said the major improvements were for higher income earners, and none of the cuts would benefit the unemployed.

"We don't see anything substantial for the people who need it most," he said. "We know those on low incomes would put that extra money into the economy. It will help them buy clothes for their kids or buy themselves a coffee."

Anglican Diocese of Newcastle people care executive director Brad Webb, who looks after Samaritans and Anglican Care, said he also saw people get back on track with the introduction of JobSeeker, and was "desperately disappointed" nothing was implemented to extend it.

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While Mr Webb welcomed the the JobMaker scheme, which incentives businesses who employ young workers, he said job availability was still an issue.

"The economy is still moving into recovery," he said. "There's a scarcity of jobs available."

Mr Webb was also skeptical about the initiative only being applicable for people under 35. "This might create inadvertent exclusion from accessing those jobs."

He said he also would have liked to see social housing reforms.

"Housing is one of the big costs for people on welfare," he said. "There is an absolute lack of social and affordable housing. This would have been a tremendous opportunity. It would have been a win for construction, for the economy and for people in need."