Covid 19 – Government financial support measures for Individuals

The generous Job keeper payment will be made available to

•        Full time employees

•        Part time employees

•        Casual workers

•        Sole trader businesses  including those working in gig economy such as UBER drivers  – Who have been affected by the downturn sparked by the virus

Businesses with less than $1billion in revenue will only be able to claim the subsidy – and pass it on to individual workers – if they experience a 30 percent drop in sales relative to comparable prior period .

It is available to staff who are working on March 1 and are at least 16 years old. Casual workers will need to have been working for the company for at least one year to receive payment.

To qualify , employee must also be an Australian citizen , or hold a permanent visa or a New Zealand citizen on a special category visa

Employers are required to deduct the applicable tax from this payment and they are not required to pay super for this payment.

The subsidy commences from 30^th March 2020. With back payment being made from the first week of May

METHOD OF APPLICATION: Workers don’t apply instead their employer apply.

Self employed individuals can register their interest with ATO through https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper

The Government is temporarily expanding eligibility to income support payments and establishing a new Coronavirus supplement, to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will commence from 27 April 2020 and will apply for six months. The income support payment categories eligible to receive the Coronavirus supplement are:

•        Jobseeker Payment

•        Youth Allowance Jobseeker

•        Parenting Payment (Partnered and Single)

•        Farm Household Allowance

•        Special Benefit recipients

For the six month period of the Coronavirus supplement, there will be expanded access to those income support payments, including for:

•        permanent employees who are stood down or lost their employment

•        sole traders

•        the self-employed

•        casual workers

•        contract workers.

Asset testing for Jobseeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the six month period. Income testing will still apply to the person’s other payments, consistent with current arrangements. The one-week Ordinary Waiting Period has already been waived. People will not be permitted, and will need to declare that they are not, accessing employer entitlements (such as annual leave and/or sick leave) or Income Protection Insurance, at the same time as receiving Jobseeker Payment and Youth Allowance Jobseeker. The process for claiming such payment will be accelerated and the application process will be streamlined.

METHOD OF APPLICATION: Apply through MyGov

The Government is proposing to allow eligible individuals to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They may also be able to access up to a further $10,000 from 1 July 2020 for approximately three months. This measure is subject to passage of legislation. To apply for early release, you must satisfy any one or more of the following requirements:

•        you are unemployed

•         you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment, special benefit or farm household allowance (access to such support payments will be fast-tracked under the Coronavirus supplement)

•        on or after 1 January 2020 o you were made redundant; or o your working hours were reduced by 20 per cent or more;

•        or o if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more.

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

METHOD OF APPLICATION:  People will need to apply directly to the ATO through the myGov website. Applicants will need to certify that they meet the above eligibility criteria. The ATO will make a determination as to their eligibility, and if eligible, they will advise the relevant super fund to make the payment direct to recipient. Separate arrangements will apply for members of a self-managed superannuation fund. Please contact the ATO for further information

The government will provide two separate payments of $750 to around 6.5 million social security, veterans and other income support recipients and eligible concession card holders residing in Australia.

The first payment will be made at any time from 12 March 2020 to 13 April 2020. The second payment will be made on 10 July 2020

METHOD OF APPLICATION: No need to apply separately. Payments will be made automatically to eligible individuals