On the 12th of March, the government announced the first of their Economic Stimulus packages in response to the current Coronavirus pandemic. On the 22nd of March, the government announced the second Economic Stimulus package it would be rolling out to support individuals and businesses during this time of crisis. We understand that these are hard and confusing times, so we thought we would break it down for you into a simple list of support packages for individuals.
Income Support & Additional Coronavirus Supplements
Over the weekend, the government announced additional income support payments to be rolled out to eligible individuals. An additional Coronavirus supplement of $550 per fortnight has been added to the current Jobseeker payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance & Special Benefit recipients. This supplement would be paid in addition the payment for the above welfare payments, which brings the maximum total payments to a $1,100 per fortnight, in comparison to the previous amount of $550 per fortnight.
The Coronavirus Supplement is available to both new and existing recipients of the above mentioned welfare payments and will be available for the next six months to help ease the strain on both individuals and the economy that has occurred due to the Covid-19 outbreak. The government also announced that in order to make these payments easier to access, they would be reducing the means testing for the Coronavirus Supplement meaning there will be no asset testing in order to access the additional payment. They also announced that the one week waiting period will be waived for this payment.
You may be entitled to this payment if the one of the following applies to you:
- You are currently receiving one of the above mentioned welfare payments
- Are unemployed
- Have been stood down from your employment
- Have lost your job
- Are a casual employee
- Are a sole trader
- Are self-employed
- Are a contract worker
For more information on Income Support & the Additional Coronavirus Supplement, you can access the full fact sheet by clicking the link below:
Additional Once off Payments to Support Households
During the first stimulus package that was announced on the 12th of March, the government announced a single payment of $750 to eligible welfare recipients and concession card holders that is to be paid to recipients from the 31st of March 2020.
Over the weekend with the announcement of the second stimulus package, the government announced that there would be a second payment of $750 that would be rolled out later on in the year to eligible recipients which will be paid from the 13th July 2020. These amounts will be paid automatically to all eligible recipients and require no action on your behalf.
Eligible recipients include (but not limited to) people on the following welfare benefits:
- Age Pension
- Carer Payment/Carer Allowance
- Parenting Payment
- Disability Support Pension
- Youth Allowance
- Jobseeker Payment
- Newstart Allowance
- Pensioner Concession card Holders
- Family Tax Benefit
To find out what other payments are included for eligibility, you can access the full fact sheet by clicking the link below:
Temporary Early Release of Superannuation
Eligible recipients will be able to access up to $10,000 of their Superannuation this financial year (before 30 June 2020) and up to $10,000 after 1 July 2020. The second payment will be able to be accessed for approximately three months but exact dates have not yet been released.
You may be eligible for early release of your superannuation if you are currently under financial hardship due to unemployment, redundancy, or reduction in income due to the Covid-19 pandemic.
For more information on eligibility and what this would mean for you, you can access the full fact sheet by clicking the link below:
Support for Retirees & those receiving the Aged Pension
Superannuation minimum drawdown requirements for account-based pensions and similar products will be temporarily halved for both the current financial year and next financial year (2020-2021). This means you can keep more of your money in superannuation should you not require it now. This will potentially allow your super time to regain recent losses.
Additionally, upper and lower social security deeming rates are also to be lowered meaning it will be easier to access the government aged pension.
We recommend you speak with your financial planner about this one.
See the full list of reduced rates, by clicking on the link below:
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