Federal lockdown support to dry up as early as October, says Treasurer
The federal government will begin phasing out financial support for those whose income has been affected by COVID-19 in a bid to stamp out state lockdowns.
Under the COVID-19 Disaster Payment, 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 payment has helped keep millions of Australians on their feet since it was announced in June this year.
In a recent interview with Travel Weekly, Tom Manwaring, chair of the Australian Federation of Travel Agents, said the lockdown payments have been a lifeline for travel businesses, many of which haven’t been able to operate for 20 months.
“We have to wait until the money begins to flow back into the system before we shut any support off,” Manwaring said.
“The lockdowns in NSW and Victoria are dreadful, but that is the only way we in the travel industry have received payroll support.
“We want people out of lockdown, we want them free to go to the restaurants, the pubs, and everywhere else.
“But as soon as that happens, travel businesses are going to need to find another way to keep staff on.”
On Wednesday, Treasurer Josh Frydenberg said the payments would begin to wind back once each state and territory achieves a 70 per cent fully vaccinated population (16 years and older) in line with Phase B of the National Cabinet’s plan.
Once a state or territory reaches the 70 per cent target, the automatic renewal of the payment will end and individuals will have to reapply each week that a Commonwealth hotspot remains in place to confirm their eligibility.
When a state’s population reaches 80 per cent full vaccination, where a Commonwealth hotspot remains in place the payment will be cut off within two weeks. After that, those who still need financial support will need to apply for JobSeeker.
Frydenberg said the move would back Australia’s reopening plan.
“Those business support payments have helped businesses keep their doors open and also to keep their staff on the books, while our COVID disaster payment has made up for those hours of work that has been lost,” he told 2GB.
“We’ve put more than $13 billion out the door just in response to the Delta variant and alone, and we can’t keep doing that with taxpayers money forever.
“These are emergency payments, and they’ll need to come to an end.”
However, Shadow Social Services Minister Linda Burney said it is too soon to be ending the payments.
“When a state or territory gets to 80 per cent vaccination, businesses are still not fully functioning and people’s jobs are still not reappearing,” she told ABC News.
“It’s just going to leave people without support and it’s going to throw them into absolute dire situations.”
A spate of additional financial support packages the government contributes to will also be wound down as each state hits the fully vaccinated targets.
In NSW, the minimum and maximum weekly payments for employing businesses will be reduced by 25 per cent to $1,125 and $75,000 weekly, and grants to be 30 per cent of weekly payroll. The grant for sole traders will reduce to $750.
A $2.27 billion package that supports Victorian businesses most affected by restrictions will also be wound back as the state reaches the fully-vaccinated thresholds.
Around 124,000 eligible Victorian businesses will continue to receive automatic Business Costs Assistance Program grants ranging from $1,000 to $8,400 per week, rising according to payroll, until the end of October.
Businesses that remain closed or severely restricted over the first two weeks of November will also receive automatic payments for that period.
In the ACT, the recently-expanded grants for tourism, accommodation, events and hospitality will also wind up once the territory reaches the 80 per cent target.
On the flip side, last weekend the Frydenberg announced $70 million in joint federal and state grants to boost support for Queensland’s major tourism and hospitality businesses who continue to do it tough.
Under the agreed package, $30 million from the state and federal governments’ $600 million support package will be targeted at supporting Queensland’s tourism attractions, and $40 million will be used to provide a second round of grants to small, medium and large tourism and hospitality businesses across the state that received an initial grant from the Tourism and Hospitality Sector Hardship Program.
The government will leave the Pandemic Leave Disaster Payment in place until 30 June 2022.
Featured image source: Facebook/JoshFrydenbergMP
Email the Travel Weekly team at traveldesk@travelweekly.com.au
financial supportLatest News
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.
Singapore Airlines grows group passenger traffic by 13.9% for March
This is one of the few situations where an increase in traffic is a good thing.
Number of Aussies going on cruises beats pre-pandemic levels
To be honest, if being stuck inside for two years doesn't give you the travel bug, then nothing will.
Vietjet slashes prices on flights across Vietnam, India & Australia
You can now fly to Vietnam for less money than a night out in Sydney or Melbourne. Time to reconsider the budget.
The Australian Hotels Association (WA) names accommodation excellence award winners
Think blowing up the airbed for your mate qualifies as accommodation excellence? Think again.
Abercrombie & Kent launches Peruvian riverboat tour
If you think being left at a port is scary? Imagine being stuck in the Amazon.
Club Med Bali reveals last-minute group travel deal
If you haven't frolicked across a beach in Bali with your colleagues have you even lived?
Regent Seven Seas Cruises grows sales team across Australia & New Zealand
It is only Monday and Regent Seven Seas Cruises is already announcing hires. Great stuff!
Out of the Ordinary Outback offers caravanners and campers a free night
It's the perfect getaway if your neighbours are starting to drive you a little insane.
Luxury Escapes reveals third signature series tour with Miguel Maestre
We would recommend reading this after lunch, otherwise you risk slobbering at your desk.