Coronavirus Supplement: What is it and are you eligible?
COVID-19 is impacting the economy and its people significantly. But the Australian government has announced they will be giving more money to welfare recipients in an effort to soften the disastrous blow.
Australian Prime Minister Scott Morrison also said he is also helping more people access welfare payments by waiving some asset tests and waiting periods.
"We will be supercharging our safety net," Mr Morrison said on Sunday.
"This is focusing on those who are going to feel the first blows."
The Coronavirus Supplement has caused great interest since it was first revealed to the public in Sunday’s press conference.
In short, it is an additional payment that is added on top of the income people on welfare already receive.
The supplement is $40 a fornight ($275 a week), meaning the JobSeeker Payment will almost double.
Those that are eligible for the Supplement include:
- JobSeeker Payment (formerly known as the Newstart Allowance)
- Sickness Allowance
- Youth Allowance for jobseekers
- Parenting Payment Partnered
- Parenting Payment Single
- Partner Allowance
- Farm Household Allowance
Those already receiving one of the welfare payments listed above don't actually have to do anything.
Services Australia will automatically pay the Coronavirus Supplement to eligible recipients each fortnight.
Those who are not currently receiving welfare will need to apply.
Payments for the Coronavirus supplement will begin on April 27 and will be available for at least six months.
It has been announced small business owners and casual workers will also be eligible for the payment if they find themselves earning less than $1,075 a fortnight.
Are small business owners and casual workers eligible?
Treasurer Josh Frydenberg said the Government will go to lengths to ensure the Australian people who have found their business is closed, or that their customers have disappeared, or who have had causal shifts cut may be able to have access to the Coronavirus Supplement.
“We have waived the assets tests and waived the waiting period but there is still the income test so if you earn $1,075 a fortnight you will get that full $550 Coronavirus Supplement,” Mr Frydenberg said.
“This is good news for a sole trader who is still in work but has seen the income reduce.
“If you are a casual and you still have some hours but your income has fallen below that $1,075 a fortnight you will get the supplement.”
It is important to remember the Australian Government has temporarily expanded eligibility for the JobSeeker and Youth Allowance payments, meaning you may be eligible if you're:
- A permanent employee who has been stood down or lost your job
- A sole trader, self-employed, a casual or contract worker whose income has reduced
- Caring for someone who's affected by coronavirus
Income testing will still apply but if you're earning less than $1,075 a fortnight, Centrelink should approve your claim, meaning you would get the supplement.
How do I apply for JobSeeker or Youth Allowance?
Those wanting to apply for a Jobseeker or Youth Allowance must do so online through myGov using a Centrelink account, or contact Services Australia by phone for more details.
But the myGov system is experiencing overwhelming demand, causing the website to crash and creating long queues on both the phone hotline and in-person at service centres.
Centrelink issued a statement warning people “it will take a little longer than usual” to get help due to the MyGov website currently crashing as it is experiencing overwhelming demand.
“Please consider the health and safety of our customers and staff and do not visit our service centres unless there's a critical need for you to be there,” the statement read.
The Government plans to hire an additional 5,000 staff for Services Australia — the agency responsible for Centrelink payments — to help deliver the new measures
Centrelink and the Government has also announced the ordinary waiting period has been waived.
They also said they will are waiving the liquid asset test waiting period, newly arrived residents waiting period, and seasonal work preclusion period if you are eligible for the Coronavirus Supplement.
Income maintenance and compensation preclusion periods will continue to apply.
Worth noting for those wanting to know if they can access employer entitlements including annual leave or sick leave - the answer is no. The government is not currently allowing people to receive these entitlements while on Job Seeker or Youth Allowances.
You also can't receive the payments if you're accessing income protection insurance.
The Prime Minister said in his Sunday press conference that the economic stimulus measures implemented so far were “unprecedented”.
They are worth $189 billion and account for around 9.7 per cent of the nation’s GDP in total.
However, he went on to say: “This will not be the Treasurer and my last visit to these podiums to make announcements on these measures,” Mr Morrison said.
“This is focusing on those who are going to feel the first blows. There will be more packages and more support.”