Covid-19 relief package sparks war of words between Victoria and Canberra

A fight has exploded between Victoria and the federal government over Covid relief cash with barbs flying from both sides.

A war of words has erupted over federal Covid-19 relief funding with Assistant Treasurer Michael Sukkar branding the state government liars.

He was hitting back after the Andrews government said they were “sick and tired” of having to beg for help and that financial support offered to NSW represented a “double standard”.

But Mr Sukkar said the state government claims were not true.

“We won’t allow lies to go unchecked,” he said.

“Reading these things for the first time on Twitter, particularly unfair statements that accuse us of not having supported Victorians in the way we have, is really disappointing.”

Mr Sukkar said Victoria had been offered the same 50-50 funding deal as NSW but had knocked it back.

Assistant Treasurer Michael Sukkar has branded the state government “liars”. Picture: NCA NewsWire / Luis Ascui

If another extended lockdown occurred in Victoria, Mr Sukkar told 3AW: “I can guarantee that we will offer the same support to Victorian businesses that we’ve offered in NSW”.

However, he said it would hinge on the state government agreeing.

Asked whether NSW was being rewarded for going into a lockdown late, Mr Sukkar said: “Clearly, mistakes are being made all around the country”.

“No state government can entirely protect against human error, which unfortunately and inevitably happens,” he said.

When asked about Mr Sukkar’s comments, acting Police Minister Danny Pearson said people were right to question whether rules were being fairly applied to all states.

“Victorian businesses were just as deserving as New South Wales businesses are now,” he said.

“You have to ask yourself why wasn’t that support forthcoming (for Victoria).

“People will make up their own minds on these questions but I think it’s really disappointing.”

Mr Pearson said businesses in Sydney “absolutely” needed the financial help they were set to receive.

“Victorian businesses should have got the support they needed early on in the piece,” he said.

“It is really disappointing that when Victorian businesses needed a hand out, or help up, the door was slammed in the face by the Prime Minister.”

The war of words kicked off late Tuesday with Prime Minister Scott Morrison accused of favouring NSW with a cash rescue plan for workers and businesses as the Sydney Covid-19 outbreak rages on.

“Everyone in Australia believes that people in Sydney and NSW deserve every possible support as they battle a second wave and a long lockdown,” a statement from the Victorian Government said.

“But Victorians are rightly sick and tired of having to beg for every scrap of support from the federal government.”

“It shouldn’t take a crisis in Sydney for the Prime Minister to take action but we are seeing the same double standard, time and time again.”

Mr Morrison said the Commonwealth had provided Victoria with the same support as NSW during its recent two-week lockdown.

Scott Morrison and NSW Premier Gladys Berejiklian at the Covid financial relief announcement on Tuesday. Picture: Getty Images

“When they were in that very long lockdown in the second wave, the commonwealth was putting in three quarters of a billion dollars into Victoria every week,” the Prime Minister told Sunrise.

“$13.4 billion of direct support to employers and employees in Victoria over the many months.

“There was more JobKeeper provided to Victoria than any other state.

“When Victoria needed Australia, they got the support.”

Treasurer Josh Frydenberg said it was disappointing the Andrews government was playing “petty politics”.

“We were prepared to go 50-50 on the business support and 50-50 on the income support,” Mr Frydenberg said.

“They rejected that. They decided that the commonwealth would pay for the income support, and the Victorian government will pay for the business (support).”

Mr Frydenberg said in some cases, business support promised weeks ago was yet to arrive.

He said the commonwealth now had a financial support template that could be rolled out across the country, if there were extended lockdowns.

“Victoria and NSW got exactly the same financial assistance from the federal government for the first two weeks,” Mr Frydenberg said.

“If tragically tomorrow Victoria was to go into a lengthy lockdown that would extend into the third and fourth week and even longer period of time, they would get exactly what we announced yesterday.”

Mr Frydenberg, who rejected suggestions of favouritism for NSW, was asked whether the move would hurt his popularity ahead of the next election.

“This is not about re-elections,” he said.

“This is about ensuring that the Australian economy recovers strongly.”

Victoria received $4220 per capita support through JobKeeper compared to $3684 per capita for NSW.

From Sunday, the Covid-19 disaster payment in NSW will increase from $500 to $600 per week if a person has lost 20 hours or more of work a week, or $325 to $375 each week if a person has lost between eight and 20 hours of work.

Small and medium businesses will also receive cash support for 40 per cent of their payroll payments, at a minimum of $1500 and a maximum of $10,000 per week, provided they don’t lay off staff.