"The businesses that would receive the money as soon as I get it are no longer going to get that money, so that's going to affect my local shops," said Rebekah, a JobSeeker recipient from Melbourne.
"The local economy will be drastically impacted by all of us not having that extra cash … they won't be receiving it either and neither will they be employing people."
Independent economist Nicki Hutley thinks 100,000 jobs could disappear because those reduced payments won't be spent in the community and boost consumption.
"So we've got millions, literally, of people both on the JobSeeker supplement and on the JobKeeper allowance, and pulling those out of the economy… it's probably equivalent to around $5 billion a month," she said.
"That's equivalent to roughly 3 per cent of GDP [gross domestic product] so it's a really big hit to the economy in one fell swoop."
When coronavirus smashed the economy almost a year ago, millions of people faced an income crisis as whole sectors were shut down to slow the spread of the virus.
A generous coronavirus supplement on top of existing payments to carers, students and the unemployed massively boosted people's incomes.
In effect, the re-named JobSeeker payment — previously called NewStart or, colloquially, "the dole" — was doubled. The Australia Institute estimated the supplement helped lift almost half a million Australians out of poverty, despite the nation being in the middle of its first recession in three decades.
Separately, the JobKeeper wage subsidy paid to employers — at a higher rate than the unemployment benefit — supported up to 3.5 million workers, almost a third of the workforce.
Both JobKeeper and the supplement will finish at the end of the month.
"When you pay additional money to low-income households they do spend it — that's what stimulated the economy," Ms Hutley said.
"If you take that money away, it's just withdrawn. It's not magically appearing from somewhere else."
That gels with the experience of Rebekah, who is raising a teenager and works as an advocate for renters in a volunteer capacity.
The supplement has improved the quantity, quality and range of food she has been able to buy for her family, but it has not created a cushion of savings.
"It's not enough to save on, we're not hoarding any money," she said. "Every cent that we get goes straight back out again."
The removal of the supplement means luxuries will be beyond the family's reach.
"I won't be heading out for coffees or banh mi or any little extra treat once the supplement is gone, because I won't have that wiggle room," she said.
Unemployment payments were recently lifted for the first time in three decades.
The newly announced increase, about $3.50 a day, lifts JobSeeker but will result in a much lower overall payment than that which was being received with the coronavirus supplement.
Making the announcement, Social Services Minister Anne Ruston said the government needed to strike a balance between an appropriate rate and the cost of the massive scheme.