The federal government will cut off COVID-19 financial support measures for businesses in the ACT, NSW and Victoria when key vaccination targets are reached.
Business support will be stopped once the three virus-affected jurisdictions, which are all in lockdown, reach the 80 per cent double-dose vaccination coverage mark.
It comes after Wednesday’s announcement the Commonwealth will, at 80 per cent coverage, cease COVID-19 disaster payments for people who have lost work due to the lockdown.
Treasurer Josh Frydenberg said the cut-off of business support measures was dependent on when the ACT, NSW and Victoria hit their vaccine milestones.
“We can’t eliminate the virus, we need to learn to live with it in a COVID-safe way,” Mr Frydenberg said on Thursday.
“Our economy has bounced back strongly before once restrictions are eased and is well-positioned to do so again when lockdowns lift.”
The support will begin to taper off once the jurisdictions reach 70 per cent double-dose coverage, before stopping altogether at 80 per cent.
Based on current targets, the federal government expects the 80 per cent mark to be reached by the end of October for NSW and Victoria, while the ACT is set to hit its target by the middle of next month.
If states and territories need to impose virus restrictions after vaccination targets are reached, Mr Frydenberg said it will be their responsibility to provide financial support.
“It will be a matter for each state to decide whether any additional targeted business support is needed in their jurisdictions as a result of any health restrictions they elect to impose,” he said.
NSW Treasurer Dominic Perrottet said his state will continue to support businesses as needed.
“The tapering of the program will ensure we continue to support businesses as we move from response to recovery, giving them much needed support as we focus on the reopening,” he said.
Nationally, 53.42 per cent of the over-16 population is fully vaccinated while the first-dose coverage rate is around 77 per cent.
Labor’s finance spokeswoman Katy Gallagher said while the business payments had to end at some point, more targeted support was needed for some industries.
“We’re concerned the government has been arbitrary and quick to turn the tap off without being mindful of the impacts on different businesses, depending on what sector they are in,” Senator Gallagher told Sky News on Thursday.
“Even when we are past 80 per cent, we know there will be some lockdowns and some businesses will be able to open at 100 per cent for a while yet.”
Meanwhile, more details about Australia’s plan for so-called vaccination passports will be revealed as the nation eyes a return to international travel.
A Senate committee will on Thursday grill federal bureaucrats responsible for delivering vaccine certificates before outbound travel restrictions are eased.
The Morrison government has pledged to drop restrictions on people leaving the country when Australia fully immunises 80 per cent of its population against coronavirus.
The target is expected to be reached in mid-November.
Vaccination certificates will be linked to chips in passports and people will have a QR code for scanning.
For people entering the country, vaccination status could dictate where and for how long quarantine is required.
Home quarantine is shaping as the future for returning Australians, but the gradual shift away from hotels is set to mean more waiting for more than 44,000 stuck abroad.
Australia will recognise Therapeutic Goods Administration-approved vaccines including AstraZeneca, Pfizer, Moderna and Johnson & Johnson.
By Andrew Brown in Canberra, AAP
