COVID disaster payments to be wound back once vaccination targets are hit

The Federal Government's stop-gap to deal with the end of JobKeeper now has its own horizon, with COVID-19 disaster payments to be transitioned out once a state or territory achieves vaccination targets for its population aged 16 years and older.

More than $9 billion of these payments have been made to around two million Australians since they were announced in June, with eligible recipients currently receiving $750 if they have lost over 20 hours of work.

People who have lost between eight and 20 hours of work per week are receiving $450, and those on income support payments who lost more than eight hours are getting $200 million.

But today Treasurer Josh Frydenberg has revealed how the payments will be wound up as the country moves into Phase B of the National Plan agreed to at National Cabinet.

"Once a state or territory reaches 70 per cent full vaccination, the automatic renewal of the temporary payment will end and individuals will have to reapply each week that a Commonwealth Hotspot remains in place to confirm their eligibility," the Treasurer said.

"In line with the movement into Phase C of the National Plan, where a Commonwealth Hotspot remains in place and a state or territory reaches 80 per cent full vaccination of its population (16 years and older), the temporary payment will step down over a period of two weeks before ending.

"In the first week after a state or territory has reached 80 per cent vaccination there will be a flat payment of $450 for those who have lost more than eight hours of work, while those on income support will receive $100."

In the second week after this milestone has been reached, the payment will be bought into line with JobSeeker at $320 for the week for those who have lost more than eight hours of work, while the payment will end for those on income support.

"For those who haven’t already returned to the workforce following the end of the temporary payment as the economy opens up, the social security system will support eligible individuals back into work," Frydenberg said.

"The Government will also leave in place the Pandemic Leave Disaster Payment until 30 June 2022.

"Since the start of the pandemic the Morrison Government has provided $291 billion in direct economic support to households and businesses."

Updated at 5:46pm AEST on 29 September 2021.

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