‘Disaster pay’ for lockdown loss

The Morrison government has been forced to give ­financial aid to states that shut down cities and regions for more than seven days

People line up outside the Covid-19 vaccination hub at the Royal Exhibition Building in Carlton, Melbourne on Thursday. Picture: Getty Images

Emergency payments of up to $500 will be handed to Victorians laid off during the second week of the Covid-19 lockdown, after the Morrison government was forced to give ­financial aid to states that shut down cities and regions for more than seven days.

Coming amid increasing political pressure for a new wage subsidy, Scott Morrison on Thursday unveiled temporary disaster payments for anyone living or working in Melbourne who won’t have an income as the lockdown is extended for another week.

Victoria recorded three new coronavirus cases on Thursday – all connected to previously known cases – taking the total of locally acquired cases in the state since the Whittlesea cluster emerged last week to 63.

Victoria’s deputy chief health officer, Allen Cheng, said health authorities were reviewing the situation “every day” when pressed on whether Melburnians could be released from lockdown earlier than June 10 if case numbers remained low and linked.

The Prime Minister said his funding announcement was not an admission the federal government was partly responsible for the lockdown, after he was criticised for overseeing a slow-moving vaccination program and hotel quarantine leaks which contributed to Victoria’s current outbreak and lengthy restrictions.

“(Covid-19) is not something we fear, it is something we fight,” Mr Morrison said. “What is important is that we ensure that the decisions that are made are commensurate with the risks that are faced to avoid any unnecessary hardship on Australians.”

Under the plan, which will be used for the Victorian lockdown and any future lockdown that lasts more than seven days, payments will become available once a suburb, town or state is declared a commonwealth hotspot for more than a week.

The commonwealth’s hotspot definition is 30 locally acquired cases over three days.

Near-deserted streets in Williamstown, Melbourne, on Thursday. Picture: David Crosling

While the Victorian outbreak has never reached that threshold, senior Morrison government sources said chief medical officer Paul Kelly had the flexibility to ­introduce hotspots sooner when there were concerning corona­virus variants involved.

Australian citizens, permanent residents and eligible working visa holders who work at least 20 hours a week will receive $500; those who work less than 20 hours will get $325.

People will be able to apply for the money, which is similar to relief given to victims of natural disasters, from Tuesday morning through Centrelink. It will be paid straight to bank accounts, as long as they can show they have less than $10,000 in liquid assets and are not on any other welfare or pandemic payments.

Mr Morrison said his preference was for the Covid disaster payments and Victoria’s $460 million business support package to be funded 50-50 by the state and commonwealth.

Josh Frydenberg said the ­demand-driven payments scheme would cost $50 million a week for every 100,000 people who were qualified.

People exercise in the early morning around Albert Park in Melbourne on Thursday. Picture: Ian Currie

The funding arrangements will be discussed at national cabinet on Friday, as Mr Morrison said restrictions in Victoria should be in place for as short a time as possible.

“It is not our expectation that those (lockdown) restrictions would be in place beyond that next seven-day period. I don’t believe it is remotely the expectation of the Victorian government that that should be in place,” he said.

“We are pleased restrictions are being lifted on regional Victoria but there are still very strong restrictions in Greater Melbourne. In fact, the kids won’t be going to school next week up until Year 11.

“That is going to be tough on families, tough on people working from home. That is going to be tough on essential workers.”

Anthony Albanese questioned why the announcement took so long while Greens leader Adam Bandt said the weekly payments should apply for the entire lockdown. He said the payment amounts meant people would still be forced to go without essentials.

Business groups hailed the Covid disaster payments and the notion the state that caused the lockdown should be the first one to pay, but said it was crucial there was a 50-50 split so states imposed restrictions only proportionate to the risk.

Australian Chamber of Commerce and Industry acting chief executive Jenny Lambert said hotel quarantine and contact tracing systems should also be strengthened to avoid further lockdowns. “It’s essential national cabinet affirm tomorrow the definition of a national hotspot because that’s the driver of the emergency response,” she said.

“Taxpayers should not be asked to write a blank cheque for state leaders taking action beyond what is needed, so this response effectively manages that possibility.”

A lone tram passenger in Melbourne on Monday. Picture: Sarah Matray

Retailers noted the Morrison government’s payments did not cater for businesses, some of which would not survive further lockdowns without more support.

The hospitality industry said the money would provide a “pressure release” to businesses across metropolitan Melbourne forced to close or stand down staff during the extended lockdown.

“It never should have come to this,” Restaurant and Catering chief executive Wes Lambert said.

“It beggars belief that a handful of cases per day continues to be the trigger to close businesses and lockdown millions of Australians.

“These lockdowns must end, full stop.”

Ahead of Mr Morrison’s announcement, Acting Victorian Premier James Merlino said income support for the state’s workers was the commonwealth’s responsibility while his government would pick up the tab for business support.

Additional reporting: Joe Kelly