The Australian Federal Government has announced a temporary COVID Disaster Payment to assist workers who reside or work in a “Commonwealth declared hotspot”, who are unable to attend work and earn an income as a result of state imposed health restrictions that last for greater than one week.

See below for details.

[Tax Month – June 2021]

 


 

Available for Australian citizens, permanent residents and eligible working visa holders, recipients will receive up to $500 per week for losing 20 hours or more of work, and $325 per week for losing under 20 hours.

The media release states that the payment is available:

  • to workers who have liquid assets of no more than $10,000;
  • to workers who have exhausted any leave entitlements (other than annual leave) or other special pandemic leave;
  • in respect of the second and any subsequent weeks of restrictions; and
  • to workers who are not already receiving income support payments, business support payments, or the Pandemic Leave Disaster Payment.

Access to the payment will be available through Services Australia from 8 June 2021.

The Politics

The politics of this is interesting – in view of the constitutional ‘mis-match’ giving the States the power to plunge their State into ‘lockdown’ but not the fiscal resources to really compensate their residents for the hardship they’ve caused them – especially on the basis of sometimes ‘dodgy’ medical advice. The 4th Victorian lockdown has thrown this into sharper relief.

The Federal Government has stumped up funds for this ‘post-JobKeeer’ and post COVID-supplement to the JobSeeker benefits, but only if the claimant is in a place, which it assesses as a ‘hotspot’ – based on its own medical advice. So, the ‘Feds’ wielded their fiscal muscle, to restore some better discipline into those jurisdictions exercising their constitutional power in a way that the Federal Government assesses as unjustified.

[Treasurers wesbite: Media Release; LTN 106, 4/6/21]