“We’ll look at all of those issues.”

The vaccine rollout coordinator-general,Lieutenant General John Frewen,has considered using a lottery as an option to encourage adoption,especially in the final months of this year when local AstraZeneca production and Pfizer imports are expected to lead to a surge in supplies.

The debate over incentives came as Mr Morrison released modelling from the Doherty Institute on the need to shift the vaccine rollout away from its initial focus on older Australians andtoward immunising younger people who are spreading the virus.

The modelling showed the advantages of reaching the national cabinet targets to vaccinate 70 per cent and then 80 per cent of people aged 16 and over,but did not model incentives or penalties such as laws in France that restrict people who are not vaccinated from going to restaurants or public events.

Treasurer Josh Frydenberg said separate Treasury modelling showed the cost of lockdowns fell sharply as the vaccination rate increased and restrictions could ease.

The cost of light or moderate restrictions nationwide amounted to $430 million each week at a vaccination rate of 60 per cent,he said,but fell to $200 million at a 70 per cent rate and $140 million at 80 per cent.

Even under the higher vaccination rate,however,state governments would retain the scope to impose lockdowns or other restrictions.

Mr Morrison emphasised the states and territories had the power to impose health orders that restricted activity,including any rules that tried to mandate vaccinations among a company’s workers or customers.

The Labor proposal divided opinion on Tuesday with Australian National University professor and infectious diseases physician Peter Collignon calling it a “bad idea” because the main issue at the moment was a shortage of vaccines rather than hesitancy.

Queensland University of Technology professor and mathematician Adrian Barnett said the Labor idea looked like good policy while University of Melbourne economist Anthony Scott said cash incentives generally worked.

“The evidence suggests that cash payments are good for short,one-off behavioural change such as a visit to get vaccinated,” Professor Scott said.

“The evidence on lotteries is not as strong.”

Business Council of Australia chief Jennifer Westacott said “nothing should be off the table” in the attempt to lift the vaccination rate as long as payments did not encourage people to wait longer or punish them for moving early.

“It’s not just one thing that’s going to get us over the line here. It’s got to be a really concerted effort around supply,around information,outlet,and of course incentives are part of that,” she said.

Mr Morrison argued the Labor scheme,which would cost $6 billion if taken up by all adults,showed the Opposition could not be trusted with public money.

But Mr Albanese said the latest national cabinet agreement,released by Mr Morrison last Friday,included a reference to incentives to lift the vaccination rate.

“The fact is that economic incentives are used across a whole range of areas to change behaviour,” he said.

“We think this is a sensible and modest proposal. But if the government has a different one,by all means,put it forward.”

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