The Morrison government will waive the one-week wait period for the taxpayer-funded sickness allowance, after it dismissed calls from unions to force employers to give casual workers paid sick leave to self-isolate and prevent the spread of coronavirus.

Innes Willox, the chief executive of Australian Industry Group, has accused unions of “opportunistically” pursuing permanent changes, while the finance minister Mathias Cormann said the government would not “fundamentally change the industrial relations system”.

But as the government unveiled its stimulus package worth $17bn on Thursday, the prime minister Scott Morrison announced the one-week waiting period for existing sickness benefits will be waived.

Casual employees and independent contractors, including gig economy workers, do not receive paid sick leave in Australia but may qualify for the sickness allowance, a means-tested payment that provides up to $560 for singles without children and $1,010 for couples out of work due to illness.

Currently, sick claimants face a waiting period of one week, plus an extra period if they have financial assets of $5,500 or more, up to 13 weeks for those with $18,000 or more.

Morrison told reporters in Canberra the payment is “going through a change of name” – as it will be consolidated into the jobseeker payment – “but it’s the same payment”.

“It is a Newstart-level payment and people who are casual employees that wouldn’t be able to go to work or because they have to self-isolate or, indeed, have the virus, they would be able to access that payment,” he said.

Morrison said the “normal asset test rules” will still apply – meaning those with liquid assets will face a wait list – as will the “normal processing time”, which Anne Ruston has told him is “about five days”.

The Australian Council of Trade Unions has called for 3.3 million casual workers to receive paid sick leave from their employers, after similar moves in the UK to allow workers to self-isolate.

Morrison noted the changes in the UK, but suggested Australia did not need to follow its lead because “we already have a system that deals with that”.

The ACTU secretary, Sally McManus, said the government announcement “falls far short of what is required”.

“In order for our country to slow down the spread of the virus and to stop infecting at-risk people, workers will need to make decisions to self-isolate,” she said. “We must remove the financial penalty for people to make this decision.

“Newstart payments are far less than what nearly all casual workers are currently paid, so the financial penalty remains.”

Quick Guide Coronavirus advice for Australia Show What are the common symptoms of Covid-19? Fever

Dry cough

Fatigue

Muscle aches and pains When should I get tested? The current national advice is to get tested if you:

are experiencing the symptoms above, and

have travelled overseas recently (within the past 14 days); or

have been in close contact with a confirmed case of Covid-19 Help lines The national coronavirus health information hotline is 1800 020 080.

The federal health department has a coronavirus health alert website. The state health department websites and contact numbers are:

NSW – 1300 066 055

Victoria – 1800 675 398

Queensland – 13 HEALTH or 13 432 584

South Australia – 1300 232 272

Western Australia – 1300 62 32 92

Tasmania – 1800 671 738

ACT – Business hours: 02 5124 9213, after hours: 02 9962 4155

Northern Territory – 08 8922 8044

The industrial relations minister, Christian Porter, met employers and unions on Tuesday and noted that casuals receive a loading of between 15% and 25% above the normal base rate of pay, in part to compensate for losing other benefits such as paid sick leave.

On Wednesday the Greens federal party room decided that when parliament returns it will introduce a private member’s bill to provide 14 days of paid sick leave for all workers, including casual employees, if they are unable to work due to Covid-19.

That would include workers diagnosed with the virus, those required to self-isolate, people who are unable to attend their workplace as it has been shut down due to Covid-19, and those caring for another person.

Anthony Albanese has said casual workers “need support” because they “shouldn’t have to choose between doing the right thing by their coworkers and being able to afford to live and eat”.

Casual workers shouldn’t have to choose between doing the right thing by their coworkers and being able to afford to live and eat. They need support – now. — Anthony Albanese (@AlboMP) March 11, 2020

Labor’s shadow government services minister, Bill Shorten, told Sky News on Thursday that casual workers were “in a terrible bind where they either self-isolate and starve or go to work sick”.

Shorten said although “it’s a cooperative effort” the government “should be helping business, particularly small business, with this cost”.

“If you’re on $20 an hour, and only get 25 hours a week – all of a sudden you’re in the hole for $1,000 and you’re got to pay your rent,” he said. “We want to make sure casuals and part-timers don’t get forgotten.”

Asked about union calls for paid sick leave, Cormann told Radio National: “Some unions are seeking to fundamentally change the industrial system in the context of this and that’s not something we’ll be able to do.”

The Greens leader, Adam Bandt, said the government “must not leave Australian workers to fend for themselves during this crisis”.

“Workers should be able to follow government advice to self-isolate without losing their income or their job,” he said.

Willox said the ACTU’s proposal “for ongoing changes to workplace laws to provide an entitlement to special leave should be quickly ruled out”.

“What is needed at this time is for the community to pull together, not for unions to use the coronavirus outbreak to opportunistically pursue ongoing changes to workplace laws,” he said.



“Employees who need to be absent from work due to the effects of the coronavirus outbreak already have a range of entitlements and protections to ensure that they are not treated unfairly.

“These include various forms of paid and unpaid leave, as well as unfair dismissal laws and the general protections in the Fair Work Act.”