COVID-19 support payments will be winding down as Australia edges closer to its vaccination target.
The NSW JobSaver program will be tapered off once NSW reaches its vaccination targets.
When NSW’s vaccination rate reaches 70% of the eligible population, JobSaver payments will taper from the current payment rate equivalent to 40% of weekly payroll to 30% of weekly payroll. This is anticipated to occur by 10 October.
From 10 October, the minimum and maximum weekly payments for employing businesses will be reduced by 25% to $1,125 and $75,000 weekly and grants to be 30% of weekly payroll. The grant for sole traders will reduce to $750.
Once the 80% vaccination rate is reached, the Commonwealth’s contribution to the JobSaver program will cease. The NSW Government will continue to provide the JobSaver payments, with minimum and maximum weekly payments for employing businesses to be reduced to $562.50 and $37,500 weekly and grants to be 15% of weekly payroll. The grant for sole traders will reduce to $375.
JobSaver payments will end on 30 November.
After NSW reaches the 80% double vaccination target, the micro-business grant will continue to be available at a rate of $750 a fortnight, before ceasing on 30 November.
The NSW Government will announce its Economic Recovery Plan in early October.
The COVID-19 Disaster Payment (Disaster Payment) will also be phased out as states reach 70 per cent and 80 per cent fully vaccinated targets.
Under current arrangements, eligible recipients would receive $750 per week if they lost over 20 hours of work, $450 per week if they lost between 8 and 20 hours and $200 per week for those on income support payments who lost over 8 hours of work.
The payment will begin to transition once a state or territory reaches 70% full vaccination of its population (16 years and older), in line with the movement into Phase B of the National Plan agreed to at National Cabinet.
Once a state or territory reaches 70% full vaccination, the automatic renewal of the temporary payment will end and individuals will have to reapply each week that a Commonwealth Hotspot remains in place to confirm their eligibility.
In line with the movement into Phase C of the National Plan, where a Commonwealth Hotspot remains in place and a state or territory reaches 80% full vaccination of its population (16 years and older), the temporary payment will step down over a period of 2 weeks before ending.
In the first week after a state or territory has reached 80% vaccination there will be a flat payment of $450 for those who have lost more than 8 hours of work, while those on income support will receive $100.
In the second week, the payment will be bought into line with JobSeeker at $320 for the week for those who have lost more than 8 hours of work, while the payment will end for those on income support.
For those who have not already returned to the workforce following the end of the temporary payment as the economy opens up, the social security system will support eligible individuals back into work.
The government will leave in place the Pandemic Leave Disaster Payment until 30 June 2022.
If you have any questions please contact your adviser.
Sources: Treasurer and NSW Treasurer, Supporting NSW businesses through to reopening and NSW Premier and NSW Treasurer, JobSaver extension to boost business recovery, [joint media releases], 30 September 2021, accessed 30 September 2021. Treasurer and Minister for Emergency Management and National Recovery and Resilience, “COVID-19 Disaster Payment”, [joint media release], 29 September 2021, accessed 29 September 2021.