On Sunday 22 March, 2020, the Federal Government announced a second round of stimulus activities designed to help Australians through the COVID-19 crisis.
This was in addition to the package that was announced on Thursday 12 March.
One of the most widely discussed measures was a ‘Coronavirus Supplement’ – a new, additional welfare payment designed to assist those receiving, or likely to need, Government benefits.
For those facing the reality of their work and income either ending, or reducing during the COVID-19 crisis, below is a summary of what this supplement means, who it will apply to, and how to apply.
Note that all measures are yet to be legislated, but indications so far are that they will be implemented as announced.
Coronavirus supplement
This is a new, additional fortnightly payment for people on welfare, that is worth $550 a fortnight, or $275 a week.
This goes to anyone receiving:
- JobSeeker Payment (or Newstart Allowance, as some refer to it)
- Sickness Allowance
- Youth Allowance for jobseekers
- Parenting Payment Partnered
- Parenting Payment Single
- Partner Allowance
- Sickness Allowance
- Farm Household Allowance
Sole traders and casual workers are also eligible if they are now, as a result of the COVID-19 situation, earning less than $1075 a fortnight.
It starts from Monday 27 April 2020.
Asset testing for JobSeeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the period of the Coronavirus supplement. Income testing will still apply to the person’s other payments, consistent with current arrangements.
If you are already receiving one of the supplements listed above, you don’t have to do anything.
Services Australia will automatically pay this to you each fortnight.
If you are not currently on welfare, you will need to apply via the myGov website.
This applies to you if you are:
- A permanent part time or full time employee who has been stood down, or who has lost your job
- A sole trader
- Self employed
- A casual or contract worker whose income has been reduced
- Caring for someone impacted by Coronavirus
Note that income testing will still apply.
The waiting period has been waived, as has the liquid asset test waiting period.
Visit the myGov website, or contact Services Australia for more information or to apply.
You can also contact Sinclair Wilson’s Tax Accountants, who can help you work out your best options.
