Any person that experiences injury and loss of income due to the COVID-19 vaccines will be eligible to claim up to $20,000, with more than 10,000 Australians already indicating their intention to claim.
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An online portal called Services Australia will be launched in December for claims above $5000, for the COVID-19 Vaccine Claims Scheme.
Health Minister Greg Hunt has said side effects from COVID-19 vaccinations can occur.
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The vaccinations in Australia include Pfizer, Moderna and Astra Zeneca.
"Most are mild and last no longer than a couple of days. Serious and life-threatening side effects are very rare, but it is important that we provide a safety net to support those affected," Minister Hunt said.
"It also ensure that health professionals administering vaccines will be able to continue with their crucial role in the vaccine roll out with assurance that the claims scheme will offer them protection."
More than 78,000 people have recorded adverse side effects such as headache, nausea and sore arms. due to the COVID-19 vaccines which the Therapeutic Goods Administration records as a small minority at 0.21 per cent.
Mr Hunt said the COVID-19 Vaccine Claims Scheme offers protection to those receiving a TGA approved COVID-19 vaccine, wherever that vaccination occurs.
People who experienced a moderate to significant reaction resulting in at least one night in hospital will be covered, with evidence injury, its connection with the vaccination, medical costs and lost wages required.
"The scheme will cover the costs of injuries above $5000 due to a proven adverse reaction to a vaccine.