Over the past 48 hours Ive found a significant source of information created by Federal Treasury Department. The website is here below if you want to bookmark it for future reference but I’ll highlight some of the key items below.
https://treasury.gov.au/coronavirus/households
Income support for individuals
Over the next six months, the 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.
Fact sheet – Income support for individuals
Payments to support households
The Government is providing two separate $750 payments to social security, veteran and other 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. Around half of those that benefit are pensioners. This payment will help to support confidence and domestic demand in the economy. The second payment will not be made to those eligible for the Coronavirus supplement.
Fact sheet – Payments to support households
Temporary early release of superannuation
The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Therefore in real terms someone could access up to $10,000 in June 2020 and then another $10,000 in July 2020 if the need was there. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
If you read the Fact Sheet it appears to be on an honesty system as it states you need to ‘self certify’ around your circumstances.
Fact sheet – Early access to superannuation
Family Tax Benefits – Part A and B
Please also check the attached Government website. If you have dependent children and you meet the relevant criteria you may be eligible for a full or part payment under this Family Tax Benefit which is paid fortnightly.
https://www.servicesaustralia.gov.au/individuals/services/centrelink/family-tax-benefit
Home Loan Assistance
I now want to summarise a few points around what is available to us as Mortgage Holders to help us get through this most difficult situation.
Savings – we say that our savings are for a rainy day. I’m here to tell you that rainy day is here.
Home Loan Redraw – check the front page of your home loan on your Internet Banking. If you have any monies available for ‘redraw’ it will be termed ‘redraw’ or ‘payments in advance’ and you should be able to access these monies back to your everyday account.
Home Loan Repayment Holidays – in general all lenders will be in a position to offer affected clients a deferral of their Home Loan commitments for up to the next 6 months.
Please be aware though that this is not a ‘free lunch’. Payments that are not made will accrue and your home loan balance will increase with ‘interest upon interest’.
You will also find that you probably need to qualify for this ‘holiday’ so please be aware that the bank will make enquiries around your entire financial position. If for example you have $10,000 in a bank account you might find them asking you to exhaust these funds before they provide assistance.
Can I also suggest – if you feel you will need to avail yourselves of this offering, then do it early. Im sure you can imagine the banks are going to be over-run very soon with these requests so the sooner you get your request in the better. Don’t let pride get in the way.
Your Home Loan – I have the lenders contact details in respect of this Covid-19 issue so if you need their details please simply reach out and I will provide them directly to you.
If you feel you would like to speak and discuss these matters that is entirely fine – Im available all day and after hours, Im here to help.