Federal government makes changes to support payments amid Sydney COVID-19 outbreak

The federal government will scrap the “liquid asset test” on COVID-19 disaster payments from week three of Sydney’s lockdown.

The Prime Minister says it would apply to all states who found themselves in the same situation.

Victorians with more than $10,000 in liquid assets were unable to access the weekly payments of between $325 and $500 when the state was in lockdown recently.

As was the case in Victoria, no payments will be made in the first week of a lockdown.

The assets test remains in place for the second week of a lockdown before being scrapped from week three.

Scott Morrison said the situation in Sydney had escalated in recent days.

“I do want to stress this is a very serious situation,” he said of Sydney’s coronavirus outbreak.

He said compliance with stay-at-home orders had been an issue in the harbour city.

“Compliance with the orders that have been put in place could not be more critical,” he said.