Pandemic leave disaster payments will continue for certain workers until the end of September, following a decision of the national cabinet at the weekend.

Prime Minister Anthony Albanese says he intended to honour the original sunset clause for the $750 payments, which were due to lapse on 1 July, but after a virtual meeting of state and territory leaders on Saturday, a new agreement will see the payments continue to respond to the ‘evolving situation’ and a marked uptick in COVID community transmission. 

“Australia is beginning to see a new wave of COVID-19 infections, driven by the BA.4 and BA.5 Omicron sub-variants, which will increase the pressure on our health system,” the PM said in a statement.

“In recognition of the risks associated with more infectious new variants through the winter period, the Commonwealth agreed to reinstate the Pandemic Leave Disaster Payment to 30 September 2022,” he said.

People without access to paid sick leave and unable to work because they must self-isolate due to a positive COVID result are eligible for the payment. 

Australian Council of Trade Unions (ACTU) secretary Sally McManus says approximately 776,000 people missed work due to illness during the recent surge period in June. 

“Bringing back Pandemic Leave Disaster Payments is very welcome and means that workers will no longer have to decide between isolating with the virus and putting food on the table for their families,” Ms McManus said. 

Business Council of Australia (BCA) chief Jennifer Westacott supported the move too. 

“A nationally consistent risk-based plan is the only way to let Australians live alongside the virus,” the BCA boss said.

“The emergency phase of this pandemic is over, so we’ve got to shift gear and manage the virus for the long term. 

“We know that clear, consistent, risk-based action is the best way to maintain our economic momentum and keep people safe,” she said. 

The government says eligible disaster payments will be backdated to the start of the month, and all existing eligibility requirements will continue.

The national cabinet came to a new agreement to share the cost of the disaster payments 50:50. Additionally, political leaders agreed to pick up half the cost of existing Rapid Antigen Test (RAT) stocks to support the public health response.