Josh Frydenberg's COVID-19 Budget Update: What You Need To Know
Over the past few days the government has announced revised financial support measures and key information about the broader economic impact of the ongoing COVID-19 situation. Here, we look at those revelations and what they could mean for you.
The Government is extending the payment period of its temporary Coronavirus Supplement from 25 September 2020 to 31 December 2020. The amount of the Coronavirus Supplement will be adjusted for this period to reflect the gradually improving economic conditions.
The amount will reduce from $550 to $250.
The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue for eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.
The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week.
From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover).
The Government is seeking to partner with states and territories to establish a $1 billion JobTrainer Fund to provide more Australians with access to free, or low cost, training places in areas of identified skills need. The Government’s commitment of $500 million, to be matched by states and territories, will give new opportunities for school-leavers and options for job seekers to upskill or reskill in a new career path that will be critical to the economic recovery.
The Government is also extending its wage subsidy for apprentices and trainees to help small and medium-sized businesses and Group Training Organisations to retain their apprentices and trainees. Where a small or medium-sized business is not able to retain an apprentice, a reengagement subsidy is available to a new employer of any size.
Temporary early access to superannuation
Eligible Australian and New Zealand citizens and permanent residents were able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They are also able to access up to a further $10,000 from 1 July 2020 until 31 December 2020. The Government is extending the application period for the measure from 24 September 2020 to 31 December 2020 to increase the scope for individuals who may still be financially impacted by Coronavirus to access early release in the coming months.
People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink and Veterans’ Affairs payments, or the JobKeeper Payment.
There’s no doubt that the current coronavirus situation is causing concern for what it means for you, your lifestyle and your financial position, so if you have any questions about these announcements and how they affect you, please feel free to contact us.
Book an initial financial planning consultation here or give Verve Group a call on (08) 8120 4877