"You won't be financially better off, we just want to reduce the financial burden of taking time off," Mrs Plibersek said.
"We know that there are a number of people who just cannot afford to take six weeks off work. This reduces the financial burden on someone who is making the greatest gift that they can to a family member, or even to a stranger."
Iran has long paid organ donors, while Singapore has also moved to allow payments.
There were about 1080 people on the kidney transplant waiting list in Australia last year, but only 237 live kidney donors. About 288 Australians donate an organ each year.
However, the government has ruled out allowing individuals to buy organs from would-be donors.
"I do not think it is right to pay for organ donations," Mrs Plibersek said.
"I think that is crossing a moral and ethical bridge that I would not be able to cross."
The government is planning to spend about £890,000 on donor payments over the next two years. Each donor will be paid a weekly payment of £414 for six weeks.
The additional kidney transplants are expected to cut public health costs by avoiding the need to provide dialysis.
The saving is likely to be about £50,000 a year for each patient who receives a kidney transplant rather than dialysis.
The head of Kidney Health Australia, Anne Wilson, welcomed the donor payments, saying deceased organ donations would not be able to meet the country's transplantation demand.
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2020-09-15
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