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Close watch needed on disincentive impacts of Covid support arrangements
“The Federal Government will need to keep a close watch on the disincentive effects of the COVID-19 Disaster Payment which will be similar to the disincentives influencing many employees under JobKeeper,” Innes Willox, Chief Executive of the national employer organisation Ai Group said today.
“When construction opened in NSW in a limited way this week Ai Group members reported that due to the ‘generosity’ of the $750 assistance payment many of their workers did not want to come back when the construction lockdown was lifted.
“Many other employers report having similar problems. This will likely intensify given the newly-determined tax-free nature of the disaster payment which makes it more generous than JobKeeper. Many employees are now in a perverse position where they can increase their total income by working less.
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Time to pull trigger on spiralling gas prices
The AWU has joined forces with a leading industry group to demand that the Federal Government act to immediately cap gas exports, with the nation’s manufacturing comeback being jeopardised by high gas prices.
In a joint letter to Resources Minister Keith Pitt, AWU national secretary Daniel Walton and Australian Industry Group chief executive Innes Willox say a spike in gas prices this year is creating a real risk there will be a domestic gas shortfall.
Dan Walton says the time for procrastination is over and the Government must pull the trigger on Australian Domestic Gas Security Mechanism, which limits producers from exporting when there is a shortfall in local supply.
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A surprise decision not to tax the latest round of disaster payments for workers adversely affected by lockdown could act as a disincentive for lower-paid employees to return to work, the Australian Industry Group has warned.
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The Australian Financial Reviewrevealed on Monday, the declaration by Scott Morrison resulted in government agencies having to hastily rework the guidelines to reflect the fact that the payments would not be taxed.
The AIG’s Innes Willox says the government will have to watch for disincentives to work.
Alex Ellinghausen
Mr Morrison’s office said the decision was intentional.
Under the latest round of payments from the federal government, workers who lose 20 or more hours of work because of lockdowns will receive $750 a week, up from $600. Those who lose between eight and 20 hours will receive $450, up from $375.