7 Stimulus Measures Australians Must Know About

7 Stimulus Measures Australians Must Know About

Stimulus measures help boost the economy during a crisis. However, the experts think the previous $17.6 billion was not sufficient enough. Australians are losing their jobs, and the RBA’s cash injection was only to provide low-interest bank loans for businesses.

For this reason, the federal government presented a new coronavirus response package, bringing the combined stimulus of $189 billion. It is only 10 per cent shy from the country’s entire GDP as of writing.

Now, what should you know about the new economic measures? Check out which category would apply to you.

1.      Stimulus Measures for Sole Proprietors or Casual Employees

Recently, the Federal government has presented a $550 coronavirus response for those accepting payments through JobSeeker. Previously known as Newstart, casual staff and sole traders will now become eligible for a full supplement if they fall below the minimum fortnightly wage of $1,075.

Nevertheless, JobSeeker Payment will become available for both existing and new recipients. Declare to Centrelink how the current economic downturn has reduced your business’ turnover. Furthermore, the government encourages unemployed beneficiaries to search for employment or improve their skills actively.

On the other hand, all sole traders on JobSeeker Payment should meet mutual commitments through continuous development businesses.

Maximum Fortnightly Payment for Jobseeker Recipients:

Single and Without Kids

  • Maximum payment: $565.70
  • Maximum payment with additional coronavirus: $1115.70

Single With Dependents, Child, or Children

  • Maximum payment: $612
  • Maximum payment with coronavirus supplement: $1162

Single, Aged 60 and Above, And Continuous Payment For Nine Months

  • Maximum payment: $612
  • Maximum payment with coronavirus supplement: $1162

With Partner

  • Maximum payment: $510.80 each
  • Maximum payment with coronavirus supplement: $1060.80 each

Single Primary Carer With An Exemption From Any Mutual Commitment Requirements

  • Maximum payment: $790.10
  • Maximum payment with coronavirus supplement: $1340.10

2.      Additional Coronavirus Supplement Payments

The following will also receive the coronavirus supplement on top of the other stimulus measures. Take note of the category which applies to both new and existing recipients.

  • Parenting Payment
  • Special Payments
  • Parenting Payment
  • Youth Allowance JobSeeker Payment
  • Farm Household Allowance

The government also waived asset testing for JobSeeker Payments, Parenting Payments, and Youth Allowance Jobseeker.

3.      Economic Support Payment

The Economic Support allocation, which amounts to $750, will now be fortnightly as well. However, a criterion for eligibility still applies.

For the initial payment this March 31, the beneficiaries will all be for Social Security and Veterans’ Income Support.

Recipients will also automatically receive a second payment unless they are beneficiaries of the $550 supplement for coronavirus.

4.      Pensioners

For Age Pension beneficiaries, they will not receive the fortnightly coronavirus supplement of $550. However, they will receive two Economic Support grants amounting to $750 apiece.

Nonetheless, the Federal Government of Australia announced that both stimulus measures would have the deeming rate reduced. The deeming rate is the total amount the government assumes your monetary assets are generating.

Beginning May 1, the deeming rate will range from 0.25 to 2.25 per cent. This economic measure will hopefully reach 900,000 income support beneficiaries.

  1. Superannuation

Starting by mid-April, coronavirus-affected individuals will have access to, at most, $10,000 of the pension this current financial year. These selected individuals will then have another $10,000 within the 2020-2021 fiscal year.

To be eligible, a person must satisfy any of the requirements listed below:

  • Unemployment
  • Eligibility to receive JobSeeker Payment, Parenting Payment, Youth Allowance for JobSeekers, farm household allowance, or special benefit.
  • A sole proprietor with business operations suspended or turnover has dropped by 20 per cent.
  • The money issued is guaranteed to be all tax-free. The Australian Taxation Office will manage all.

6.      Small Business Owners

The $100,000 cash payment would be tax-free and available for small companies with a yearly turnover of $50 million or less. The government will pay financial aid as a complete refund through the business’ ITR. The Federal Government expects stimulus measures like this will benefit 690,000 companies, and 30,000 NGOs, which are also eligible.

7.      Centrelink

For current customers:

  • The government will send Economic Support or Coronavirus Supplement Payments automatically if eligible.
  • Be reminded not to call or visit the Centrelink office.

For new customers:

  • Start a claim online through www.serviceaustralia.gov.au.
  • Call if you do not have income support payment or CRN. You must also need support after losing a job or suffering an unfair wage decrease.
  • Concerning over-the-phone transaction, you no longer have to visit Centrelink.

Stimulus measures help supplement the sectors that were hit the hardest by the coronavirus pandemic. Hopefully, these will invigorate Australia’s struggling economy, stopping it halfway from a complete market depression.

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