The Australian Federal Government is finally increasing the dole's $40-a-day base rate as the coronavirus pandemic throws hundreds of thousands of Australians out of work.

Prime Minister Scott Morrison is working out how to reshape the Australian welfare system after the unemployment rate rose to 7.1%. This is due to 227,000 people losing their jobs.

Morrison described the latest figures as "heartbreaking", but has refused to comment on the speculation.

"JobSeeker is the place where, if you have lost your job, JobSeeker is the place where you can connect to other employment services, to training opportunities," he said.

It is currently unclear as to the rate itself will rise or whether a new supplement will be added to the base JobSeeker payment.

Morrison has also emphasised the importance of the JobSeeker Allowance in helping Australians get back to work.

"We put our supports in place, income supports, JobKeeper and JobSeeker, and we put that in for six months so we would have that time to properly move for the next step, to change gears again," he said.

"Because anyone who can tell you that they know exactly what is going to happen in September, in this COVID crisis, is having a loan of you."