Income support for individuals
The government has taken various measures to provide a ‘safety net’ for individuals who are financially impacted by the Coronavirus.
The New Coronavirus Supplement
A new six-month ‘Coronavirus supplement’ of $550 per fortnight will be paid to individuals who are currently eligible for certain income support payments, including the;
Jobseeker Payment;
Youth Allowance; and
Parenting Payment (Partnered and Single).
Furthermore, this new (additional) supplement will be paid to eligible individuals as part of their existing income support payments (e.g., Jobseeker Payment and Youth Allowance).
Expanding access (and eligibility) to certain income support payments
For the period that the Coronavirus supplement is paid, the Government will also expand access to certain income support payments (e.g., the Jobseeker Payment, the Youth Allowance Jobseeker and the Parenting Payment) for eligible individuals.
For example, a new category of Jobseeker Payment and Youth Allowance Jobseeker will become available for eligible individuals financially impacted by the Coronavirus.
According to the Government, this could include, for example, permanent employees who are stood down or lose their employment; sole traders; the self-employed; casual workers; and contract workers who meet the income tests, as a result of the economic downturn due to the Coronavirus.
Additionally, asset testing for the JobSeeker Payment, the Youth Allowance Jobseeker and the Parenting Payment will be waived for the period of the Coronavirus supplement. Income testing will still apply to the person’s other payments, consistent with current arrangements.
Tax-free payments of $750 to eligible recipients
The Government will be providing two separate $750 tax-free payments (referred to as ‘economic support payments’) to social security, veteran and other income support recipients and to eligible concession card holders.
The first $750 payment will be available to individuals who are residing in Australia and are receiving an eligible Government payment, or are the holders of an eligible concession card, at any time from 12 March 2020 to 13 April 2020 (inclusive). This payment will be made automatically to eligible individuals from 31 March 2020.
available to individuals who are residing in Australia and are receiving one of the eligible Government payments or are the holders of one of the eligible concession cards on 10 July 2020 (except for those receiving an income support payment that qualifies them to receive the $550 fortnightly Coronavirus supplement). This payment will be made automatically to eligible individuals from 13 July 2020.
Each of the $750 payments will be exempt from income tax and will not count as income for the purposes of Social Security, the Farm Household Allowance and Veteran payments.
Fast Claims
To ensure timely access to payments, new applicants are encouraged to claim through on-line and mobile channels. If applicants do not have internet access, they can claim over the phone. Consider the following examples of individuals eligible for the $550 supplementary payments;
Example 1
Tom is in his mid-30s and lives in Melbourne, with two dependent children aged 10 and 12 and works as a telephone consultant for a travel agency. The economic downturn due to Coronavirus has caused the travel agency where he works to close for a six-month period and resulted in Tom’s hours being reduced to zero.
Tom will be eligible to apply for Jobseeker Payment and the Coronavirus supplement under the new streamlined process. He can apply online and make a declaration about his identity, residency status, income and that he has had his hours reduced to zero as a result of the economic downturn due to Coronavirus.
Tom is deemed eligible for Jobseeker Payments and will receive $1,171.50 per fortnight, which includes:
Jobseeker Payment single, with dependent child rate of $612.00 per fortnight; plus
Energy Supplement of $9.50 per fortnight; plus
Coronavirus supplement of $550 per fortnight.
Example 2
Jason is a sole trader. He operates an architecture practice, specialising in home renovations. Jason’s practice has been successful over the years, and he has been able to build up a reasonable amount of assets during his career, to a level that would ordinarily make him ineligible for an income support payment. The economic downturn due to Coronavirus has adversely affected Jason’s business, and his income has been reduced to zero.
Jason will be able to apply for the new Jobseeker / Coronavirus supplement and will not have his assets included as part of the eligibility assessment for the payment. He will also not be required to serve a Liquid Asset test Waiting Period, as that has been waived.
Jason is eligible for the Jobseeker payment and, as he is married, will receive:
Jobseeker Payment partnered rate of $510.80 per fortnight; plus
Energy Supplement of $7.90 per fortnight; plus
Coronavirus supplement of $550 per fortnight.
This brings his total fortnightly income support payment to $1,068.70.
If you have been financially affected by the COVID-19 (Coronavirus) and are seeking immediate assistance, we recommend that you contact Centrelink to seek whether you are eligible for the supplementary fortnightly payment of $550.
コメント