Coronavirus: Less than $20m spent on Melbourne lockdown payments

The commonwealth spent less than $20m on Covid disaster payments to workers in Melbourne during the latest lockdown.

Fewer than 42,000 Melbourne workers applied for the Federal government’s temporary Covid disaster relief payment. Picture: NCA NewsWire / Luis Ascui

The commonwealth has spent less than $20m on disaster payments to workers in Melbourne who lost income during the second week of the state’s latest lockdown, Services Australia data reveals.

As at Tuesday midnight – five days after the city’s lockdown ended – $19,684,000 had been paid to 42,784 Victorians through the temporary scheme, which Scott Morrison announced on June 3 as a way to assist Melburnians affected by severe social distancing restrictions.

There were 33,024 claims granted for $500 a week for losing 20 hours or more of work, and 9760 claims for $325 a week for losing fewer than 20 hours.

The deadline for final claims is July 2, however the pace of applications had slowed over the past week, a Services Australia spokeswoman said.

The formal lockdown – alongside the commonwealth designation of Melbourne as a “Covid hotspot” to make workers eligible for the federal support – ended on June 10 and was replaced with lighter restrictions, which will ease further from Friday.

When the measure was announced, Josh Frydenberg said it would be a “demand-driven program”. The Treasurer also noted that “for every 100,000 people”, the potential maximum cost would be “$50m per week”, and there were roughly half a ­million casual workers in the metropolitan Melbourne area.

Analysis by The Australian ­estimates there were about 200,000 casual workers in exposed industries such as hospitality and personal services.

The Services Australia data suggested the need for the program may have come in well shy of initial estimates, and the commonwealth’s contribution to the state paled in comparison with Victorian authorities, which dedicated close to $460m to support businesses hurt by the state’s fourth lockdown.

To receive the relief, applicants could not have liquid assets of more than $10,000. Those already on income support were also not eligible, as were those who had unused special pandemic leave entitlements from their employers.

KPMG chief economist Brendan Rynne said the combination of the tighter eligibility criteria and the fact workers were less willing to tackle the application process than employers may explain the limited uptake.

Opposition Treasury spokesman Jim Chalmers said the numbers showed federal support had amounted to “less than $3 for every Victorian in lockdown”.

“Josh Frydenberg has only coughed up a fraction of the $100m a day the Treasury secretary warned could be lost because of this lockdown,” he said.

Dr Rynne said “the (Morrison) government would argue that its (Covid disaster relief) ­payment was more effective than JobKeeper, as the reality is those people who had the need have been the ones who have followed through and sought the assistance”.

He added: “For JobKeeper, the pendulum swung too far … in being too free and easy. Maybe … the pendulum has swung back too far the other way.”