NSW economy cops near $1 billion hit every year from Covid isolation restrictions

Premier Dominic Perrottet wants Covid isolation requirements to be scrapped from September, as the economic cost of virus-related absenteeism soars into the hundreds of millions.

Mandatory Covid isolation should be scrapped by September as long as the health system is coping, Premier Dominic Perrottet says.

In a bid to stop Covid staff shortages crippling the economy, Mr Perrottet wants governments to end strict isolation requirements after the current Winter wave is over.

The Daily Telegraph can reveal that the NSW economy is losing almost $1 billion per annum from people missing work because of Covid rules or because they are sick with the virus.

“We have to get to a point as a country, that if you are sick, you stay at home (and) if you are healthy, you go to work,” Mr Perrottet said on Monday.

The comments come after Prime Minister Anthony Albanese agreed to a push from state governments to reinstate payments of up to $750 for people who are forced to miss work after testing positive to the virus.

Premier Dominic Perrottet wants Covid isolation requirements to be scrapped by the end of September. Picture: NCA NewsWire / Nikki Short

The pandemic leave payment is now due to be scrapped at the end of September.

Mr Perrottet said that by September, Covid rules should be changed so people who test positive but don’t get sick are not stuck at home for a week.

“By the time we get to the end of September, I think we should be in a position to adjust those settings if circumstances permit.”

According to government modelling, obtained by The Telegraph, the total cost to the NSW economy of people missing work due to Covid and Covid restrictions is approximately $900 million per annum.

No changes were made to the seven day isolation period following Saturday’s national cabinet meeting, after chief medical officer Paul Kelly advised that the current settings need to remain in place for now.

“Given the increased spread of the Covid virus in recent times that we’ll see continuing, it’s expected to peak over coming weeks, now’s not the time to change those provisions which are there,” Mr Albanese told Adelaide radio on Monday.

Mr Perrottet has backed that decision, but said that governments need to plan for when isolation requirements can be scrapped.

The Premier said easing the isolation requirements would help fix workforce shortages, including in healthcare.

“There are many people who are isolating who feel well. Including our health staff … if people are well, they should go to work,” he said.

“People need to work. Industries need to go back.”

Earlier, Mr Perrottet told 2GB that according to health advice, current flu strains are more severe than Covid-19 variants circulating in the community.