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COVID-19 Disaster Payments to transition out

COVID-19 Disaster Payments will be phased out after states reach the 70 per cent vaccination milestone, said federal Treasurer Josh Frydenberg.

COVID-19 Disaster Payments to transition out
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COVID-19 Disaster Payments to transition out

Since June 2021, more than $9 billion worth of payments have been made to 2 million Australians who received up to $750 per week if they had lost more than 20 hours of work each week, down to $200 per week for those on income support payments who lost over eight hours of work.

The move to transition from the Disaster Payments is part of the national cabinet’s Phase B National Plan.

The transition will occur once a state or territory reaches 70 per cent full vaccination. From that point, 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. 

When the 80 per cent target of full vaccination is reached, Phase C of the National Plan will come into force, which will see the temporary payment 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, the payment will be brought 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.

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

Mr Frydenberg said the program was an “unprecedented level of economic support”, and that there should never have been an expectation that it would continue indefinitely.

“We need to learn to live with the virus, we can’t eliminate it,” Mr Frydenberg said.

“People have had enough (of lockdowns) … They’re at their wits end.

“They want their kids back at school, they want their businesses to reopen. They are getting the jab because … when they get the jab, restrictions will ease.

“That is what the State governments need to provide.”

Mr Frydenberg said the Commonwealth would continue to work with states to provide support to hard-hit industries, including tourism providers that are struggling with the lack of international visitors.

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