Treasurer grilled over plan to phase back Covid-19 disaster payments from October

Today co-host Karl Stefanovic has ripped into Treasurer Josh Frydenberg over plans to scrap Covid-19 disaster payments within weeks.

Today co-host Karl Stefanovic has blasted the government over controversial plans to scale back and eventually scrap Covid disaster payments.

Covid-19 disaster payments offering lockdown-affected workers up to $750 a week will start phasing down from October as soon as each state hits 80 per cent double dosed vaccination rates, and will be scrapped from November.

Treasurer Josh Frydenberg will announce the plan to phase out the payments on Wednesday and it could see some workers in NSW, Victoria and the ACT lose cash within a month.

Under the plan outlined, the automatic renewal of the payments will now end when a state hits 70 per cent double dosed adults. In NSW, Victoria and the ACT, the states are expected to hit the 70 per cent double dosed target in mid October, with the 80 per cent target likely to be hit around a fortnight later.

Speaking to Mr Frydenberg on Today this morning, Stefanovic blasted the decision as “cold and brutal”.

“I get that you can’t keep it going and going but many industries won’t be back to normal at 70 or 80 per cent – you have the arts, nightclub, hospitality and tourism, especially in Far North Queensland … to cut them off is kind of cold and brutal, isn’t it?” he asked.

Treasurer Josh Frydenberg.

“Firstly, we have announced (specific) economic support programs for the tourism industries right across all of the states and territories, as well as other entertainment venues and businesses,” Mr Frydenberg replied.

“And that is important, including in Queensland, which as you say is not in lockdown today but because of those closed borders, Karl, a number of those big tourism businesses in Queensland are hurting on the Sunshine Coast, in Cairns, on the Gold Coast.

“So we recently announced in partnership with the Queensland Government, $600 million to support a range of businesses in Queensland. It’s those sorts of direct economic payments that complement what we’ve been doing at higher, broader level with the Covid disaster payment and other economic support.”

Under the change, workers will now have to reapply each week to confirm that they have lost the relevant hours of work under the eligibility rules as soon as the state where they live hits 70 per cent double vaxxed.

If you are back at work and no longer qualify for payments, you will lose eligibility for the payments right away in October.

As soon as a state hits 80 per cent of adults that are double vaccinated, the payments will start to phase down over a period of a fortnight before it is scrapped entirely. In NSW, Victoria and the ACT, those targets are likely to be hit in November. If you’re still out of work you will be forced onto unemployment payments.

The Covid payments will end as the vaccination rate goes up.

“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,’’ the Treasurer said in a statement.

“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.”

The Treasurer has warned for months that the states shouldn’t expect Commonwealth-funded Covid disaster payments to continue once Australia reaches 70 per cent vaccination.

“At that point in time, the Doherty Institute in their words say that stringent lockdowns will become unlikely … so we have to give listeners some hope that there’s light at the end of the tunnel,” he said in August.

Covid-19 disaster payments will be scrapped in November.

The Covid-19 Disaster Payment has supported around two million Australians with over $9 billion in payments made since it was announced in June this year.

Eligible recipients have received $750 per week if they lost over 20 hours of work, $450 per week if they lost between eight and 20 hours and $200 per week for those on income support payments who lost over eight hours of work.

The Covid-19 Disaster Payment is tax free income and you don’t need to include it in your tax return.

“As I have said before we can’t eliminate the virus, we need to learn to live with it in a Covid-safe way. This means we must ease restrictions as vaccination rates hit 70-80 per cent in accordance with the plan agreed at national cabinet,’’ Mr Frydenberg said.

“As restrictions ease the economy is well positioned to bounce back. Today’s announcement about the winding down of the Covid disaster payment will provide businesses and households with the certainty they need to plan for the future.

“The Federal Government continues to work with the states and territories in lockdown on tapering business support payments once vaccination rates hit 70 per cent in those jurisdictions. We will have more to say shortly.

“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 Pandemic Leave Disaster Payment will remain in place until June 2022.

The Government will however leave in place the Pandemic Leave Disaster Payment until 30 June 2022.

The Pandemic Leave Disaster Payment is a separate payment for people who can’t earn an income because they must self-isolate, quarantine or care for someone who has Covid-19.

So if you’re in that category, you can still secure support for a two-week period until July 2022 if you’re forced to self-isolate or quarantine.