Covid lockdown cash tap to turn off for Queensland in December

Treasurer Josh Frydenberg has announced when Covid lockdown support payments will be cut off in a bid to force state premiers to back a national plan to open back up.

Covid lockdown support payments will be cut after states hit 80 per cent full vaccination, in a bid to pressure premiers to back the national plan for reopening.

Treasurer Josh Frydenberg will announce the changes on Wednesday, saying it is part of the economic recovery plan, after foreshadowing a month ago tap could be turned off.

Under the scheme, eligible workers could receive up to $750 a week if they lost more 20 hours of work, $450 for eight to 20 hours and $200 for more than eight hours.

But once a state hits 70 per cent double dose vaccination, automatic renewal of the payments each week during a lockdown will end with recipients required to keep reapplying.

Then at 80 per cent, the payments will taper down over two weeks until they are cut off entirely.

In the first week there will be a flat payment of $450 for those who have lost more than eight hours of work in a lockdown, while in the second week it will be dropped to $320 which is in-line with JobSeeker.

Treasurer Josh Frydenberg will announce personal Covid lockdown support payments will end at 80 per cent double dose vaccination. Picture: NCA NewsWire / Martin Ollman

The timing will depend on each state reaching the vaccination milestones, with Queensland not expected to hit 80 per cent until December.

Mr Frydenberg said the temporary COVID-19 Disaster Payment had paid $9 billion in support to about 2 million Australians since it was announced in June.

“As I have said before we can’t eliminate the virus, we need to learn to live with it in a Covid safe way,” he said.

“This means we must ease restrictions as vaccination rates hit 70 to 80 per cent in accordance with the plan agreed at national cabinet.

“As restrictions ease the economy is well positioned to bounce back.”

More than 53,000 Queenslanders applied for the cash support within 48-hours of applications opening during the state’s eight-day lockdown last month.

He said there would be “more to say shortly” on tapering down business support payments once vaccination rates hit 70 per cent, with discussions to take place with the state and territory governments.