Sydney’s lockdown cost revealed as $257 million per day

The gigantic daily cost of ongoing restrictions could toss Australia back into recession as business and construction groups call for help for workers.

Lockdowns in Sydney and other major cities are costing Australia $2.8 billion per week and threatening to undo Australia’s economic recovery, according to new analysis by EY commissioned by the Business Council of Australia.

In a landmark new report, “Be smarter about managing the virus,” the BCA found that lockdown losses are most heavily concentrated in NSW, costing $257 million each day, and recommends that Australia take a more targeted approach to fighting coronavirus outbreaks.

Were the current Sydney lockdown to go on for 100 days, a little less than a fortnight as long as Melbourne’s 112 day 2020 lockdown, it would erase the entire year’s economic growth and threaten to toss the nation back into recession.

Clients arrive at the newly opened South Western Sydney Vaccination Centre at Macquarie Fields. Picture: Lisa Maree Williams/Getty

Calling for “nationally consistent and uniform approaches” to the triggering of lockdowns, the report reflects the frustrations of the business community and many other Australians at the seemingly unclear rules for imposing and removing restrictions.

The report also urged the adoption of a single definition of “hot spot” that would apply nationwide, public health orders that are targeted and shift to reflect rising rates of vaccination, as well as what a “JobSaver” scheme to help workers in affected industries.

Under their proposal, workers should be eligible for up to $1,200 a fortnight relief, or $1,500 in the case of extended lockdowns.

The BCA also urged a restart of at least “some” of the NSW construction industry, which was hit with a snap two-week ban on all activity that was supposed to end this Friday, though that is considered doubtful given the state has not yet seen new case numbers markedly decline.

“Lockdowns have enormous economic and social costs and should be a last resort. But where they are used, we need to move from snap to smarter lockdowns,’’ said BCA chief executive Jennifer Westacott.

“We need to provide more certainty, and stop people worrying day-to-day where they stand,” she said.

NSW Chief Health Officer Dr Kerry Chant. Picture: Lisa Maree Williams Pool/Getty

On Monday, reflecting the concern around the construction industry, the Urban Taskforce made a further call for the federal government to restart JobKeeper to take care of those temporarily out of work in the construction and property sectors, though thus far the federal government has appeared reluctant to take such a step.

Instead, those who have lost more than 20 hours work per week are eligible for a $600 per week disaster relief payment.

“The Commonwealth budget had a windfall bonus last year when things went better than expected. Now is not the time to “penny pinch”. It is time to step up,” said Urban Taskforce CEO Tom Forrest.

Originally published as Sydney’s lockdown cost revealed as $257 million per day