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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.
As
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.