Invest
Vaccine rollout delay could set back herd immunity by 12 months, costing billions
Invest
Vaccine rollout delay could set back herd immunity by 12 months, costing billions
Australia’s delay in the vaccine rollout is tipped to cost the nation over $1.4 billion and see residents locked down for an additional 11.1 days, an industry expert has said.
Vaccine rollout delay could set back herd immunity by 12 months, costing billions
Australia’s delay in the vaccine rollout is tipped to cost the nation over $1.4 billion and see residents locked down for an additional 11.1 days, an industry expert has said.
The Morrison government’s initial COVID-19 Vaccine Roadmap plan would have reached the earliest possible measure of herd immunity (65 per cent vaccination rate) by August 2021.
However, the government has formally abandoned its target of having every Australian vaccinated against COVID-19 by the end of October.
Prime Minister Scott Morrison issued a Facebook message on Sunday night confirming that the government has not set, nor has any plans to set, a new vaccination target.
“While we would like to see these doses completed before the end of the year, it is not possible to set such targets given the many uncertainties involved,” he said.
While the cost of lockdowns varies wildly, Treasurer Josh Frydenberg has previously stated that a national lockdown cost Australia $4 billion per week.
According to a new report by the McKell Institute, even if Australia picks up the vaccination rollout rate to that of the UK, herd immunity would be delayed by 116 days from Morrison's original schedule. Under the same scenario, Australia could except 11.1 days of lockdown, costing the economy some $1.368 billion.
By comparison, if Australia were to instantly increase the pace of vaccination to mimic the rate of Germany, the delay would be 353 days with a projected economic cost of $4.164 billion.
“These delays will increase the chance of lockdowns and the economic costs that come with them,” McKell Institute's executive director, Michael Buckland.
“It’s vital we are clear-sighted about the cost and impact of a government’s action or inaction.
“Just as it was correct for the government to measure the economic impact of state lockdowns, so too should the government embrace the publication of clear information about the economic impact of its vaccination rollout program.”
Mr Buckland highlighted that the slow rollout could have devastating impacts on small businesses.
“Australia’s vaccination program has failed to meet its targets, and it’s incomprehensible that we will catch up. Our leaders need to accept the additional risks of delay and act.
“Additional support measures for vulnerable people and businesses must be considered in response to the delay,” he concluded.
RELATED ARTICLES
-
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
-
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
-
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
About the author
About the author
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
