COVID-19 Economic Stimulus Package for Employees

The COVID-19 pandemic has led to a lot of disarray worldwide and an economic downturn that has impacted the status of employees and individuals. With layoffs and hours being cut, many are looking towards assistance during these hard times. So, what does the COVID-19 pandemic mean for employees and individuals generally? Read on to find out what employees can expect to see.

One thing that has been changed is that income support payments have been increased to 0 per fortnight for half a year. This change goes out to those new and existing that are receiving JobSeeker payments, involved in the Youth Allowance JobSeeker program, those that receive parenting payments, a farm household allowance or any special benefits.

Those that are receiving Centrelink payments will receive 0 by mid-April. A further 0 was paid on 13 July 2020. However, there is an exclusion as those receiving JobSeeker allowances and similar payments won’t be receiving the special payments.

If the pandemic has caused significant financial distress for individuals, then people can access up to ,000 of their superannuation prior to July 2020. Additionally, a further ,000 can be accessed for three months after that. That totals to ,000 that individuals have access to.

All of these payments will be tax free, so you won’t have to worry about the government getting a cut. If you are eligible then you can apply online for these benefits through MyGov. To receive them, you will need to be unemployed, eligible to receive JobSeeker payments, or your working hours were reduced by over 20 percent from the start of the year. If you are a sole trader, then your business must have had a reduction in turnover by 20 percent since the current year began or have completely ceased.

It is also worth noting that there has also been a reduction in the minimum drawdown requirements for account-based pensions as well. They have been halved for the 2019/2020 and 2020/2021 years.

Employees may be entitled to JobKeeper payments of ,500 per fortnight if their employer is eligible. Make sure to contact your employer to see if they are able to register. These payments are assessed each month and companies may have to give information to the Australian Tax Office each month to stay eligible. The payments last six months, totaling up to ,000.

All of these options from the COVID-19 pandemic economic stimulus package for employees and individuals should help those in need during these difficult times of financial instability. Everyone is working together to help the economy thrive once again from these hardships.

For those that need more information on what their options are and need financial guidance, Chapmans Accountants are here to help. Located on the New South Wales Central Coast, Chapmans provides service throughout the country to help sole traders, growing businesses, superannutation funds and not-for-profit organisations. We can help with business strategies, accounting, and self-managed super funds. Give us a call at 02 4302 4140 today and learn what all we can offer you.

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Chapmans Accountants Joined: April 18th, 2020