As the COVID-19 crisis subdues the economy, many people are losing their jobs or having their hours and incomes cut.
Fortunately, the government is offering financial assistance to help people through the tough times.
Here’s what you need to know.
Help if you lose your job
If you’ve lost your job or been stood down without pay, you might be entitled to the JobSeeker Payment.
The payment is also available to sole traders, the self-employed, casual workers, and contract workers who have lost their livelihoods as a result of the economic downturn due to the Coronavirus.
It’s the equivalent of what used to be known as the unemployment benefit, but pays an extra $550 a fortnight on top of the usual benefit for six months from April 27.
Different people will receive different amounts depending on their circumstances.
The government has provided some hypothetical examples:
‘Leonie’ a woman in her mid-30’s with two dependent children aged 10 and 12 would receive $1,171.50 per fortnight, comprising the JobSeeker Payment of $612.00; an energy supplement of $9.50, and the coronavirus supplement of $550.
She would also receive Family Tax Benefit Part A and Part B of $483 a fortnight.
‘Chris’, who is married and whose partner earns less than $25,000 a year, would receive a fortnightly income support payment to $1,068.70, consisting of $510.80 JobSeeker Payment; energy supplement of $7.90; and coronavirus supplement of $550.
Gavin Debono, executive director of private business and family advisory at Pitcher Partners accountants, points out that the government has made it easier for people to get the payment.
The government has waived the usual one week waiting period and has put aside the assets test – which stops a person from receiving the payment if they own more than a certain level of financial assets.
Debono says putting aside the asset test is especially helpful, because it means people won’t have to sell any of their assets in the current depressed share and housing markets to receive the payment.
However, if you have a home loan and your income has been cut you might be able to negotiate your online home loan rates, speak to an expert at UNO for a recommendation that would best suit your needs.
The JobSeeker Payment isn’t just for people with no income.
If your income has dropped below the eligibility thresholds, you might be entitled to some of the payment, although perhaps not the entire amount.
For instance, a single person with no children could earn $1,086.50 per fortnight before the payment cut out completely.
The income limits are outlined HERE.
If you have a job and your pay has been cut, then you might be entitled for some government assistance paid by your employer.
Employers which have had a substantial reduction in their income are entitled to JobKeeper Payments of $1500 a fortnight to help them keep on paying their staff.
It’s up to the employer to apply for the payments and then to pass it on to you to supplement your income.
However, if your employer has cut your income, it is a good idea to ask them if they have applied for the JobKeeper payments.
UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule
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