For example, the ACT package will be topped up over the next two weeks with additional grants for businesses with turnovers of up to $10 million.
But by October 15, when the territory should reach an 80 per cent double-dose vaccination rate, any further assistance will be the sole responsibility of the local government.
Agreement has also been reached with Victoria, while NSW and the Commonwealth were still negotiating late Wednesday.
The federal government fully funds income supports of between $450 and $750 a week for workers who have been stood down or lost significant hours of work. These will cease two weeks after each jurisdiction reaches the 80 per cent vaccination rate.
Reaction to this was mixed. Federal Labor and the ACTU said the withdrawal was too soon because not all businesses would be back on their feet at 80 per cent and people would lose jobs.
But ACT Labor chief minister Andrew Barr was comfortable.
“It was important there was a tapering down, that the payments weren’t immediately cut off. I think, based on the trajectory of our vaccination rollout, that it will align with the pathway forward that we’ve outlined,” he said.
NSW Premier Gladys Berejiklian said she was confident that the pent-up demand in her economy would “allow businesses to get on their feet perhaps more quickly than they anticipated”.
Australian Chamber of Commerce and Industry chief Andrew McKellar said the phased removal of disaster payments would encourage employers to re-engage their staff.
“However, while businesses continue to trade at reduced capacity, we need to be cautious about removing support too quickly. Reopening a business after lockdowns is not as simple as flicking a switch. It will take time for businesses to return to full capacity and get their employees back into the workplace.
“As disaster relief payments are to individuals, continued access should depend on individual circumstances. Indeed, we can’t be sure that the impacts of lockdowns will be gone in a short period of time.
“If the government removes support prematurely, it could result in a sharp jump in unemployment and a contraction in household consumption, slowing our post-pandemic recovery.”
West Australian Health Minister Roger Cook said the state didn’t want to rely on the federal government for economic assistance. He said an extended lockdown was unlikely in the west.
“It’s disappointing that the Commonwealth would make these sort of threats on the basis of jurisdictions that aren’t managing their outbreaks.
“But Western Australia will continue to play its role to ensure we support the other states by keeping our mining sector open to make sure the federal government has the revenue to support the other states.”
