COVID-19 – Financial Crisis Assistance: Low-Income Earners

Following on from the Financial Crisis Assistance  article, we now concentrate on Low-Income Earners.

The other 5 articles in this series are:

Superannuation Pension and Centrelink recipients
Home Owners and Investors
Small and Medium Businesses
Larger Businesses
Landlords & Tenants

You can also refer to our other articles by clicking on the links above for your personal situation.

There have been a number of specific announcements to assist low-income earners, with the major measures as follows:

1: Newstart Allowance (changed name to Jobseeker Payment):

Eligibility for Newstart payments have been reduced, so casual employees, contractors and sole traders can access this more easily. The value of the fortnightly payment has also been doubled.

2: Early access to super:

Access to superannuation savings will be broadened where you’re in financial distress because of the Coronavirus and meet certain eligibility conditions.

If you’re eligible, you’ll be able to access up to $10,000 before 30 June 2020 and an additional $10,000 from 1 July for approximately three months (depending on the timing of legislation).

To be eligible, you must meet one of the following conditions:

• You are unemployed
• You are eligible to receive Jobseeker Payment, Youth Allowance (jobseekers), Parenting Payment, Special Benefit or Farm Household Allowance
• On or after 1 January 2020, you were made redundant, your hours of work reduced by at least 20%, or if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%.

Applications will be through MyGov and you’ll need to certify that you meet one of the above eligibility requirements. Once the ATO confirms you’re eligible, they will issue you and your super fund with a determination and the payment will be made to you. If you have a self-managed super fund, arrangements will differ.

Payments will be tax-free and amounts received will not impact Centrelink or Department of Veterans Affairs (“DVA”) entitlements.

It is expected that claims can be made from mid-April 2020.

3: Coronavirus Supplement – Centrelink:

The Coronavirus supplement of $550 per fortnight will be paid to new and existing recipients of:

• Jobseeker Payment
• Youth Allowance (Jobseeker)
• Parenting Payment
• Farm Household Allowance, and
• Special Benefit.

The supplement will be paid over the next six months and will be paid automatically with the person’s ordinary fortnightly entitlement. It will be paid from 27 April 2020.

4: Centrelink Payments, including Family Tax Benefit:

There will be two payments of $750 each paid to eligible income support recipients and concession card holders. The first in March 2020, and the second in July 2020. The second payment will be available to those who aren’t eligible for the Coronavirus supplement and will be automatically paid from 13 July 2020.

The first tax-free payment will be automatically paid to eligible recipients from 31 March 2020.

To be eligible, you must be residing in Australia and receiving one of the income support payments on 12 March 2020, or have applied for an eligible payment before 12 March 2020, or a holder of one of the concession cards as follows:

We are here to support you by getting access to the information and any financial assistance as soon as it comes to hand. We will help you with your finances and your financial welfare or any other concerns however small or large. Please email us at consulting@ww2.austasiagroup.com, or via phone on 08 9227 6300.

Best Regards,

Simon Chesson
Director