As a result of the economic slowdown brought on by Covid-19, there is great uncertainty which is therefore impacting many individuals in Australia (and around the world). The Federal and State Governments along with the Banks, are focused on relieving the pressures associated with this via a series of relief packages aimed at helping businesses as well as individuals. Below is a snapshot of what help is being offered to individuals.

Rent

The Federal Government initially announced a “moratorium on evictions” over the coming six months for both commercial and residential tenancies in financial distress and have since followed up with a mandatory code of conduct for commercial tenancies.

The NSW State Government is in the process of finalising their relief plan for residential tenants. It is worth noting that landlords and tenants who are not significantly affected by coronavirus are expected to honour their lease and rental agreements.

Mortgages

Alongside the Federal Government, Australian Banks are in support of government schemes and are ready to help their customers in any way they need. The Australian Banking Association (ABA) urges Australians in need of financial support to come forward as soon as possible.

At this stage banks are offering differing levels of relief including payment deferrals, reduced interest rates, increased overdraft facilities, waiving of fees, restructured loans or extensions.

Contact your financial institution to enquire about what you are entitled to or click here for more information regarding relief offered by different lenders.

Cash Support

JobKeeper Payment

The JobKeeper payment helps businesses cover an amount of their employees’ wages to help ensure that more Australians can retain their jobs and continue to earn an income. Your employer will notify you if they intend to claim the fortnightly payment of $1,500.

Income Support for individuals

Over the next six months, the Federal Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This will be paid to both existing and new recipients of JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit recipients.

Household Support Payments

The Federal Government is providing two separate $750 payments to income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020.

Superannuation Concessions

The Government is allowing impacted individuals to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not pay tax on amounts released and withdrawals will not affect Centrelink or Veterans’ Affairs payments.

Also, the Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for 2019-20 and 2020-21. This measure will benefit retirees holding these products by reducing the need to sell investment assets to fund minimum drawdown requirements.

Conclusion

The relief packages on offer are aimed at helping individuals navigate their way through these uncertain times and ensure a steady income stream continues alongside unchanged housing conditions.

Let Us Help

Although the above is focused on initiatives for the individual, ABJ Solutions is here to help businesses during this challenging time. If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary 30 minute Zoom meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help.