Page 4 - Tropic Magazine Issue 223

ECONOMIC RESPONSE
TO THE CORONAVIRUS
The Commonwealth Government has released the second stage of its
economic plan to cushion the economic impact of the Coronavirus.
Support for workers and households
Coronavirus supplement
The Government is temporarily expanding eligibility
for 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
new and existing recipients of the JobSeeker
Payment, Youth Allowance jobseeker, Parenting
Payment, Farm Household Allowance and Special
Benefit.
The Coronavirus supplement will be paid for the next 6
months. Eligible income support recipients will receive
the full amount of the $550 Coronavirus supplement
on top of their payment each fortnight.
An increase of up to 5,000 staff for Services Australia
will assist to support delivery of new Government
measures.
Payments to support households
In addition to the $750 stimulus payment announced
on 12 March 2020, the Government will provide a
further $750 payment to social security and veteran
income support recipients and eligible concession
card holders, except for those who are receiving an
income support payment that is eligible to receive the
Coronavirus supplement.
This second payment will be made automatically
from 13 July 2020 to around 5 million social security,
veteran and other income support recipients and
eligible concession card holders. Around half of those
that benefit are pensioners.
The first payment will be made from 31 March 2020
to people who will have been on one of the eligible
payments any time between 12 March 2020 and 13
April 2020.
Authorised by W. Entsch, Liberal National Party of Queensland, 200 Mulgrave Road, Westcourt QLD 4870.
Early release of superannuation
The Government will allow individuals in financial
stress as a result of the Coronavirus to access up
to $10,000 of their superannuation in 2019-20 and a
further $10,000 in 2020-21.
Eligible individuals will be able to apply online
through myGov for access of up to $10,000 of their
superannuation before 1 July 2020. They will also be
able to access up to a further $10,000 from 1 July
2020 for another three months. They will not need
to pay tax on amounts released and the money they
withdraw will not affect Centrelink or Veterans’ Affairs
payments.
Temporarily reduce superannuation minimum
drawdown rates
The Government is temporarily reducing
superannuation minimum drawdown requirements for
account-based pensions and similar products by 50
per cent for 2019-20 and 2020-21. This measure will
benefit retirees by providing them with more flexibility
as to how they manage their superannuation assets.
Reducing social security deeming rates
On top of the deeming rate changes made at the time
of the first package, the Government is reducing the
deeming rates by a further 0.25 percentage points to
reflect the latest rate reductions by the Reserve Bank
of Australia.
As of 1 May 2020, the lower deeming rate will be 0.25
per cent and the upper deeming rate will be 2.25 per
cent.
The change will benefit around 900,000 income
support recipients, including Age Pensioners.