▶Advancing social justice,

promoting decent work

COVID-19 Country policy responses

13 July 2021

Countries are taking unprecedented measures to combat the spread of the disease, while
ameliorating its pernicious effect on the economy and labour market.

Find out the policies implemented by governments, employers’ and workers’ organizations, and
the ILO in 188 countries and territories.

Content can be found in one of the ILO official languages (English, French and Spanish)
depending on the country.

How policies are reported

Country policy responses are presented within the four pillars of action defined by the ILO to
lessen the impact of COVID-19 on businesses, jobs and the most vulnerable members of society.

Pillar 1: Stimulating the economy and jobs

Active fiscal policy
Accommodative monetary policy
Lending and financial support to specific sectors including the health sector

Pillar 2: Supporting enterprises, employment and incomes

Extend social protection for all
Implement employment retention measures
Provide financial/tax and other relief for enterprises

Pillar 3: Protecting workers in the workplace

Strengthen OSH measures
Adapt work arrangements (e.g. teleworking)
Prevent discrimination and exclusion

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 Provide health access for all
Expand access to paid leave

Pillar 4: Using social dialogue between government, workers and

employers to find solutions
Strengthen the capacity and resilience of employers’ and workers’ organizations
Strengthen the capacity of governments
Strengthen social dialogue, collective bargaining and labour relations institutions and
processes

Australia Last Updated: 2 July 2020

Stimulating the economy and employment

2 July 2020

The Australian Government has acted decisively in the national interest to support households
and businesses and address the significant economic consequences of the coronavirus
pandemic (COVID-19).

Active fiscal policy

The Government’s economic support package of $259 billion represents fiscal and balance sheet
support across the forward estimates of 13.3 per cent of annual GDP. Direct fiscal measures are
equivalent to around 6.9 per cent of GDP.

The Government’s economic response is designed to support businesses in managing short-

term cash flow challenges, provide support to individuals, severely affected communities and
regions, and to ensure the continued flow of credit in the Australian economy.

Accommodative monetary policy

The Reserve Bank of Australia (RBA) has implemented a comprehensive package to put
downward pressure on borrowing costs for households and businesses, including lowering the
cash rate target to 0.25 per cent and providing a term funding facility to lower costs for the
entire banking system. The RBA is extending and complementing the interest rate cut by taking
active steps to target a 0.25 per cent yield on 3-year Australian Government Securities.

The Government will support the markets for asset-backed securities through the Australian
Office of Financial Management, investing $15 billion in structured finance markets used by
smaller lenders. This supports smaller lenders to maintain access to funding and aids
competition in the lending market.

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Lending and financial support to specific sectors including the health sector

The Government’s comprehensive $2.4 billion health package, provides unprecedented support
across primary care, aged care, hospitals, research and the national medical stockpile, to protect
all Australians, including vulnerable groups, such as the elderly, those with chronic conditions,
and Indigenous communities, from COVID-19.

Funding to boost and support aged care

The Government announced a new COVID-19 support package of $205 million for residential
aged care providers to ensure the continuity and viability of the workforce.

Funding and Support for the disability sector

The Government announced a range of measures to assist National Disability Insurance Scheme
(NDIS) participants and providers to ensure people with disability continue to receive essential
supports during COVID-19.

The Government is also providing a further $90.7 million to support Australians with disability
to help with employment and other support services who are at risk during COVID-19.

Early childhood education and care relief

The Government is providing $1.6 billion to support child care services to remain open in the
wake of COVID-19 and to provide families who need it with access to care. To receive these
payments child care services must prioritise care to essential workers, vulnerable, disadvantaged
and previously enrolled children, and must not charge families any fees for sessions of care
provided.

Higher Education Relief Package

The Higher Education Relief Package delivers to universities and other higher education
providers, a predictable and reliable cash flow with incentives to continue teaching students,
including workers displaced by the COVID-19 crisis to upskill or retrain.

Supporting enterprises, jobs and incomes

2 July 2020

Extend social protection for all

JobKeeper Payment

The Government has introduced the JobKeeper Payment to help businesses and not-for-profits
significantly impacted by COVID-19 to continue paying their employees. This assistance will help
businesses to keep people in their jobs and re-start when the crisis is over. For employees, this
means they can keep their job and earn an income.

The Government amended the Fair Work Act 2009 to enable employers receiving the JobKeeper
Payment to temporarily vary workplace arrangements for relevant employees, which they
consider necessary, to counter the impact of COVID-19 or government initiatives. Existing rights
and protections for employees under Australian labour law are maintained.

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Increased income support individuals

The Government has temporarily expanded eligibility for income support payments, including
JobSeeker. In addition, a new Coronavirus supplement of $550 per fortnight is available until 24
September 2020.

Temporarily reduce superannuation minimum drawdown rates

The Government is temporarily reducing superannuation minimum drawdown requirements for

account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This
measure benefits retirees with account-based pensions and similar products by reducing the
need to sell investment assets to fund minimum drawdown requirements.

Support for regions and communities

The Government set aside $1 billion to support regions and communities most significantly
affected by COVID-19. These funds will be available to assist during the outbreak and recover.

Implement employment retention measures

Supporting apprentices and trainees

The Government is supporting small business to retain their apprentices and trainees. The
program provides employers with a 50 per cent subsidy for the wages paid to each eligible
apprentice from 1 January 2020 to 30 September 2020.

Support has also been provided to the National Apprentice Employment Network, the peak
national body representing Group Training Organisations, to co-ordinate the re-employment of
displaced apprentices and trainees throughout their network of host employers across
Australia.

Provide financial/tax and other relief for enterprises

Boosting Cash Flow

The Government is providing temporary cash flow support to small and medium businesses and
not-for-profit organisations, including charities, who have an aggregated annual turnover under
$50 million and employ staff during the economic downturn associated with COVID-19. This will
be done through two sets of cash flow boosts from 28 April 2020, of between $20,000 and
$100,000, delivered through credits in the Australian Tax Office’s activity statement system,
when eligible businesses lodge their activity statements.

Relief for financially distressed businesses

The Government has temporarily increased the threshold at which creditors can issue a
statutory demand on a company and to initiate bankrupt proceedings against an individual as
well as temporarily increasing the time companies and individuals have to respond to statutory
demands they receive. The package also includes temporary relief for directors from any
personal liability for trading while insolvent, and providing temporary flexibility in the
Corporations Act 2001 to provide targeted relief from provisions of the Act to deal with
unforeseen events that arise as a result of the Coronavirus health crisis.

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Increasing the instant asset write-off

The Government has increased the instant asset write-off threshold from $30,000 to $150,000
and expanded access to include businesses with aggregated annual turnover of less than $500
million (up from $50 million) until 30 June 2020.

Protecting workers in the workplace

2 July 2020

Strengthen OSH measures

Under Australia’s Work Health and Safety (WHS) laws employers have a duty of care for the
health and safety of their workers and others at the workplace. This includes providing and
maintaining a work environment that is without risk to health and safety, and providing
adequate facilities for workers in carrying out their work.

To keep workers safe and limit the spread of COVID-19, the Government recommends that
employers should do the following:

§ allow workers to work from home, where possible

§ ensure physical distancing in the workplace by keeping a distance of at least 1.5 metres
between people

§ encourage all workers to frequently wash their hands for at least 20 seconds with soap and
water or by using an alcohol-based hand sanitiser and to practise good hygiene

§ make sure workers do not come to work if they are unwell

§ make sure your workplace is regularly cleaned and disinfected

§ have signs and posters around the workplace to remind workers and others of the risks of
COVID-19 and the measures that are necessary to stop its spread.

Safe Work Australia resources

The Safe Work Australia website provides a hub of work health and safety guidance and tools
that Australian workplaces can use to manage health and safety risks related to COVID-19.

Prevent discrimination and exclusion

All Australians, regardless of their race, ethnicity, or cultural and religious background, have a
right to feel safe and respected in our society. Racial discrimination in Australia is illegal. The
Government has a range of factual information available in key languages to help people,
particularly the elderly, understand the risks, and protect the health of all members of the
community.

Provide health access for all

Medicare is Australia’s universal health care scheme. It covers the cost of public hospital
services, and some or all of the costs of other health services. These can include services

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provided by GPs and medical specialists. They can also include physiotherapy, community
nurses and basic dental services for children.

Mental health and wellbeing

The Government is providing a $74 million health and wellbeing package to support the mental
health and wellbeing of Australians facing the challenges of COVID-19. This package provides
careful, targeted and practical measures to support mental health and wellbeing for Australians
during this crisis, giving people direct access to online support and counselling services when
and where they need it most.

The Government has also expanded telehealth services to ensure that people can continue to
access their mental health treatment services by videoconferencing or telephone.

Expand access to paid leave

Unpaid pandemic leave & annual leave changes to awards

The Fair Work Commission has added a temporary new schedule into 99 awards to provide
greater flexibility during the coronavirus pandemic. The temporary schedule gives employees
two weeks of unpaid pandemic leave, and the ability to take twice as much annual leave at half
their normal pay if their employer agrees.

The Fair Work Commission has also made other temporary changes to some awards to provide
more flexibility during the coronavirus outbreak.

Relying on social dialogue for solutions

2 July 2020

The Government is working cooperatively with unions and business groups to shape the
government’s response to the COVID-19 situation. The benefit of social dialogue has been
evident in the development of initiatives such as the JobKeeper wage subsidy, and the variation
of modern awards.

The Government is working cooperatively to restore the jobs that have been lost as a result of
COVID-19. Australia’s ‘JobMaker Plan’ is about finding ways to get our economy moving again
and urgently regrow the jobs so many Australians have lost. As part of this plan, the Government
has established a new five-stream working group process aimed at trying to fix known problems
in the industrial relations system.

Building on the cooperative relationships fostered during the COVID-19 pandemic, the
Government is working with key stakeholders from employer, industry and employee groups,
with each working group focussing on one key area of the industrial relations system:

· Award simplification

· Enterprise agreement making

· Casuals and fixed term employees

· Compliance and enforcement, and

· Greenfields agreements for new enterprises.

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The aim of the working groups is for stakeholders to reach as close to consensus as possible on
an industrial relations reform package that will support business recovery and create jobs. The
Government’s role will be to facilitate discussions, rather than issue directive policy positions.

Other measures
2 July 2020

Economic recovery

The Government has announced its JobMaker agenda to reset the Australian economy for
growth over the next three to five years. This includes ensuring that Australia continues to be
part of global supply chains that can deliver the prosperity we rely on to create jobs, support
incomes and build businesses.

The JobMaker plan will target skills, industrial relations, energy and resources, higher education,
research and science, open banking, the digital economy, trade, manufacturing, infrastructure
and regional development, deregulation and federation reform, a tax system to support jobs
and investment. A number of measures to support these areas are still in development.

Enhancing Skills

The Government seeks to improve training for Australians to match the jobs businesses are
looking to create.

The Government will be doubling the cost of Arts degrees while decreasing the cost of various
other degrees, including agriculture and teaching, to create “job-ready graduates”.

Infrastructure and regional development

The Government introduced the new $680 million HomeBuilder program to provide eligible
owner-occupiers with a grant of $25,000 to build a new home or substantially renovate an
existing home. The program will support 140,000 direct jobs, and another 1 million related jobs,
in the residential construction sector by encouraging the commencement of new home builds
and renovations.

The Government has announced $86 million worth of new targeted grants to support the
forestry industry, wine producers and apple growers hit by the bushfires and the effects of
COVID-19. This initiative is about helping communities to ‘build back better’, and accelerate
economic recovery and ultimately deliver more jobs to the regions.

Arts Sectors

The Government has announced a $250 million stimulus package to support the cultural and
creative sectors, whose work contributes $112 billion to the economy. The package would
deliver:

· $90 million in concessional loans to help businesses fund new productions and events,
delivered through commercial banks.

· $75 million in competitive grant funding to help production and event businesses to put

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 on new festivals, concerts, tours and events as social distancing restrictions ease.

· $50 million for a Temporary Interruption Fund to support local film and television
producers to start filming again, administered by Screen Australia.

$35 million to support Commonwealth-funded arts and culture organisations facing threats to
their viability due to COVID-19.

For more information on the Australia’s Government’s response please view the following:

Australia’s Response to COVID-19

https://www.australia.gov.au

https://www.pm.gov.au/media

https://www.treasury.gov.au/coronavirus

https://www.dss.gov.au/about-the-department/coronavirus-covid-19-information-and-support

https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-
alert/government-response-to-the-covid-19-outbreak

Support available for individuals and businesses impacted by COVID-19

https://www.ato.gov.au/General/COVID-19/

https://www.treasury.gov.au/coronavirus/jobkeeper

https://www.treasury.gov.au/coronavirus/households

Activities of workers' organizations

Summary

The ACTU campaigned for a wage subsidy to keep workers in their jobs; the wage subsidy
scheme called ‘JobKeeper’ was announced on 30 March and will begin May 1 onwards
during the pandemic period

The social partners were united in calling forthis key government announcement in
relation to workers
There has also been constructive agreement between unions and employers about some
measured and temporary changes to industrial agreements during the pandemic

ACTU maintains an up to date webpage on the ongoing efforts to support workers in

dealing with the pandemic. ACTU coronavirus information centre:
https://www.actu.org.au/coronavirus

ACTU advocated strongly for a wage subsidy, as did the peak employer group. The

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 Government package, takes into account some suggestions made by the ACTU, and will
benefit millions of workers. It falls short, however, and does not cover about 2 million
workers – casual workers who have been with their employer for less than 12 months,
and temporary visa workers.

The government has also increased the quantum paid to unemployed persons on welfare.
The ACTU continues to work constructively with both the Government and reasonable
employer groups during the crisis to protect workers’ rights, to save job and keep people
safe.

Source: Australian Confederation of Trade Unions (ACTU)

For more information, see also:

Government responses

Australian government responses to COVID-19

https://www.fwc.gov.au/documents/documents/resources/covid-19-
information/information-note-government-responses-2020-03-30-1800.pdf

Economic impact

A report on the economic impact of COVID-19 on sectors/industries in Australia and New

Zealand: https://www.ibisworld.com/industry-insider/media/4637/covid-19-special-
report.pdf
Other industry fact sheets, updated yesterday: https://www.ibisworld.com/industry-
insider/analyst-insights/coronavirus-update-industry-fast-facts/

JobKeeper payment

The government factsheet on the payment is here:

https://treasury.gov.au/coronavirus/jobkeeper
ACTU analysis of JobKeeper payment: https://www.actu.org.au/media/1449028/cv04-41-
jobkeeper_factsheet.pdf
ACTU media release: https://www.actu.org.au/media/1449028/cv04-41-
jobkeeper_factsheet.pdf
Unions and employers lobby:
https://www.theaustralian.com.au/nation/politics/coronavirus-the-odd-couple-truce-
working-to-save-jobs/news-story/59708ba2c118eddb02857dbca4608c70

Activities of employers' organizations

Australia Chamber of Commerce and Industry (ACCI) gathered members together to find out
the questions individual employers wanted answers to, then prepared a guide for members.
ACCI is also holding weekly teleconferences and have also made emergency proposals to
government to change the law on workplace relations - to keep Australians in work and
businesses in business. In the employment area, ACCI’s proposal is focused on increased
flexibility in hours of work (staggered shifts), leave flexibility, a moratorium on strikes, a zero

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increase in MW etc. In terms of the government’s stimulus package, ACCI has requested for a
targeted spending (i.e. to businesses in need

On 26 March, ACCI and the Australian Services Union struck a deal and lodged an application
with the Fair Work Commission to amend the Clerks – Private Sector Award 2010 which covers
more than a million people around the country performing clerical, payroll and administrative
duties in businesses of all sizes and all industries. The application seeks to provide relief to
business and employees during the pandemic by:

Allowing employees and employers to agree to change ordinary hours of work whilst an
employee is working at home. This should give employees expanded options to help
manage their job around things like schooling children from home during the day without
an employer facing additional costs for work being conducted out of usual business
hours.
Allowing a business with one weeks’ notice to direct an employee to take annual leave if it
decides to close-down its operations.
Allowing staff to work more flexibly across classifications, provided it is safe to do so and
the employee has the necessary qualifications.
Allowing for employers to direct employees to take annual leave
Increased flexibility in taking leave such as double leave at half-pay, where employers and
employees agree.
Allowing employers to engage casual and part-time employees for shorter shifts.
Giving employers flexibility to reduce hours for full and part-time staff, whilst allowing
employees whose hours are reduced to take on another job or ask to engage in training
or additional study.

ACCI also made a strategic alternation to offer free membership to new members.

ACCI has prepared an employer guide for Australian business owners to help them navigate the
key safety and employments issues during the coronavirus pandemic.

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