Covid-19 disaster payments ‘too generous’, says Innes Willox

Sydney construction workers are not taking shifts because of generous Covid-19 disaster payments, Australian Industry Group chief executive Innes Willox says.

Ai Group chief executive Innes Willox.

Construction workers in Sydney are not taking up shifts because of the generosity of Covid-19 disaster payments, Australian Industry Group chief executive Innes Willox says.

After months of warnings about JobKeeper and JobSeeker payments making workers less likely to accept shifts last year, the nation’s peak industry group is now worried the $750 a week, tax-free Covid-19 disaster payment is having the same effect.

The disaster payments are more time-limited than the old JobKeeper system and limited to locked-down pandemic hotspots, but Mr Willox said employer reports in Sydney – where restrictions on construction sites are eased – show what little work can be done in the hotspots is being harmed by the payments.

“When construction opened in NSW in a limited way this week, Ai Group members reported that due to the ‘generosity’ of the $750 assistance payment, many of their workers did not want to come back when the construction lockdown was lifted,” he said on Wednesday.

“Many other employers report similar problems. This will likely intensify, given the newly determined tax-free nature of the disaster payment which makes it more generous than JobKeeper.

“Many employees are now in a perverse position where they can increase their total income by working less.”

Under the Covid-19 disaster payment system announced last week, workers receive $750 a week if they lose 20 hours or more of work. People who lose between eight and 20 hours of work receive $450 a week.

Scott Morrison last week at The Lodge said the Covid-19 payment system was quicker and more targeted than JobKeeper.

The National Recovery and Resilience Agency is administering the payments and a spokeswoman for the agency on Thursday said there were strict limits on the system.

“Services Australia has advanced methods for detecting false claims for payments. There are serious penalties in place for people deliberately claiming a payment they are not entitled to,” she said.

“People applying for the Covid-19 disaster payment are required to declare they were unable to work at least one full day, or at least eight hours during each week of lockdown.

“Services Australia’s Covid-19 disaster payment claim form clearly states that the payment is only for people who can’t work because of the current restricted movement/lockdown area.

“The form also collects an ­employer’s details, and reminds applicants of their obligations to answer all questions truthfully and honestly.”