COVID-19 Pandemic – Government Benefits Update

July 28th 2020 | Categories: Financial Planning |

Job Keeper:

The JobKeeper payment was originally provided to eligible businesses impacted by the Coronavirus as a subsidy payment to help cover the wages of their employees. The payment ensured eligible employees were paid at least $1500 per fortnight with the aim of allowing more people to remain employed during this period.

On the 21^st of July, the Prime Minister announced that the JobKeeper payment will continue to be available until the 28^th of March 2021. Originally the scheme was due to end on the 27^th of September, however, payment rates will be reduced effective from the 27^th of September.

Business eligibility will need to be assessed on each key date and obtain a business loss of:

• 50% for organisations with a turnover of more than $1b
• 30% for organisations with a turnover of $1b or less
• 15% for Australian charities and non for profits

Payment rates from the 27^th of September to the 3^rd of Jan

$1200 per fortnight for employees working more than 20 hours per week.

$750 per fortnight for employees’ workings less than 20 hours per week.

Payments rates from 4^th of Jan to the 28^th of March

$1000 per fortnight for eligible employees working more than 20 hours per week.

$650 per fortnight for employees working less than 20 hours per week.

You can find the full JobKeeper extension fact sheet here.

Coronavirus supplement

The Coronavirus supplement is automatically paid to those on government income support payments such as JobSeeker or Youth Allowance.

The Coronavirus supplement of $550 per fortnight for eligible individuals will change on the 24^th of September. Payments will be reduced to $250 per fortnight from the 24^th of September until the 31^st of December 2020.

Eligibility and Criteria Changes:

Changes have also been made to the income test, means test, partners income test and mutual agreement criteria. You can read more on that here.

2^nd round early super release

From the 1^st of July, those who are eligible are able to access a further $10,000 from their super for the financial year of 2020/2021. If you find yourself out of work during the new financial year you are also eligible to apply.

You can read more on this in our article “Should I take money out of my super fund early”

If you are currently experiencing financial hardship you may find our guide to managing financial hardship useful where we include a step by step action plan on how to put yourself in the best financial position possible during this period.

We understand this can be a stressful and challenging time, if you would like to discuss your financial position with one of our advisers please don’t hesitate to reach out. You can find more resources and insights on managing finances during the Coronavirus pandemic on our COVID-19 response page.

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What you need to know

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