Social policy represents a critical dimension of the governmental response to COVID-19. This article analyses the Australian response, which was radical in that it signalled an unprecedented policy turnaround towards welfare generosity and the almost total relaxation of conditionality. It was also surprising because it was introduced by a conservative, anti-welfarist government. The principal argument is that, though the generosity was temporary, it should be understood simultaneously by reference to institutional change and institutional tradition. The ‘change’ element was shaped by the urgency and scale of the crisis, which indicated an institutional ‘critical juncture’. This provided a ‘window of opportunity’ for reform, which would otherwise be closed. ‘Tradition’ was reflected in the nation’s federalist conventions, which partially steered the response. The central implication for other countries is that, amid the uncertainty of a crisis, governments need to consider change within the bounds of their traditional institutions when introducing welfare reform.
