The federal government will begin winding down Covid disaster payments as each state and territory hits 70% and 80% target vaccination rates for their populations aged 16 and over.
When a state or territory reaches 70% fully vaccinated people will have to reapply each week for the payment instead of it being automatically renewed. At 80% the payment will be phased out entirely.
The move is designed to push premiers and chief ministers to minimise their use of lockdowns by withdrawing the financial safety net.
Finance Minister Simon Birmingham said it would also mean that states and territories would have to “foot the bill” if they did choose to lock down past the targets.
The federal Opposition has questioned why Covid disaster payments are coming to an end while health restrictions remain in place after reopening and some individuals will still have their hours of work restricted because of the gradual transition out of lockdown.