Understanding how the proposed government stimulus package affects you
Updated: Mar 2
The Australian Government has made some announcements around a stimulus package to support the economy in these challenging times. It is important to understand how you could benefit from these changes once they’re passed into law.
INCOME SUPPORT PAYMENT
The Newstart allowance will have a temporary supplement of $550 per fortnight - on top of the current amount - for the next 6 months. This effectively doubles the Newstart allowance.
For the self-employed or sole traders, you must make a declaration to Centrelink that your business has suspended trading or has had a significant reduction in turnover due to the crisis.
Am I Eligible?
The following people can access the payment
Youth allowance job seeker
Farm household allowance and
EARLY ACCESS OF SUPERANNUATION
Subject to legislation being passed, eligible Australians can have a tax-free early withdrawal from their superannuation funds up to $20,000 over two financial years; $10,000 for 2019-20 and a further $10,000 for the 2020-21 year. The payments will not affect any Centrelink or Veteran’s affairs pensions. All applications are made directly to the ATO via www.my.gov.au account.
Who can Access this payment?
To qualify for this payment, you must satisfy any one of the following requirements;
you are unemployed; or
you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
on or after 1 January 2020:
you were made redundant; or
your working hours were reduced by 20% or more; or
if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
TEMPORARY REDUCTION OF MINIMUM PENSION PAYMENTS
The Government has announced a reduction in the minimum pension payment required to be withdrawn from Account based pension accounts by 50% in both FY20 and FY21.
Who can access this?
If you're in the pension phase of superannuation, you're eligible for this reduction.
We understand that these are challenging times for us all. We’re here to support you through this and will encourage you to reach out to us to discuss any concerns you may have. We’ll continue to provide you with information to help you navigate these times. This information is of a general nature and we've not assessed your personal circumstances. we'd encourage you to talk to us first before making any changes to your current strategies.