Individual Options for Coronavirus Economic Stimulus Package

The coronavirus outbreak has significantly altered how 2020 has gone for people. From job losses to global lockdowns, everyone has been hit by the impact of the pandemic. It has caused an economic struggle worldwide, which is impacting individuals and employees more than anyone. With companies choosing to downsize and cut hours, many people are having difficulties making ends meet during this unprecedented time. However, there is assistance to be had right now and the coronavirus economic stimulus package gives individuals some options to help their financial situation. Keep reading to learn what the coronavirus pandemic means for individuals and what you can do.

Many changes have been made to offer financial assistance. This includes that income support payments have been increased to $550 per fortnight for six months. This totals $3,300 in aid and goes out to new and existing individuals that are getting JobSeeker or Youth Allowance JobSeeker payments, those that receive parenting payments, farm household allowances and other special benefits. 

If you are receiving Centerlink payments, then you will be glad to know that you receive $750 by mid-April. Another $750 is paid out on 13 July 2020. There is an exclusion, though, as those receiving JobSeeker payments and similar aid won’t receive these allowances.

If you are in a bleak financial situation due to the pandemic and are in need of help, then you can access up to 10 grand of your superannuation prior to July 2020. After that date, a further $10,000 can be access for the next three months, giving you up to $20,000 that can be accessed this year.

In great news, all of these payments are tax free, so there isn’t a catch to them. If you are eligible for them, then you can apply online to receive these benefits using MyGov. You are eligible if you are either unemployed, are able to receive JobSeeker payments or your working hours have been reduced by 20% or more from the beginning of 2020. For sole traders, your business must have had a turnover reduction of at least 20 percent since the year began.

The minimum drawdown requirements for account-based pensions have been reduced as well. They are now at 50 percent for both the 2019/2020 and 2020/2021 time periods. 

Those that are eligible for JobKeeper payments can receive $1,500 each fortnight if their employer is eligible, so make sure to contact your employer to see if they have registered or not. These payments are assessed each month individually, so your company will have to continue working with the Australian Tax Office and giving up to date information to stay eligible. The payments last for six months, meaning you can receive $9,000 total.

These individual options from the coronavirus economic stimulus package can help employees greatly during these tough times of economic uncertainty. Chapmans Accountants is here to aid sole traders, growing businesses, superannutation funds and non-profits. Give us a call at 02 4302 4140 to learn more about our services and what your options are.

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