As part of the Morrison government’s “coronavirus stimulus package”, it has been announced that starting on the 31st of March, pensioners and welfare recipients will be given $750 cash payments to help encourage economic activity in Australia amidst the COVID-19 crisis. The initiative will make up $4.8 billion of the larger $17 billion coronavirus stimulus package.
The Australian government has specified that those covered by the cash injection plan include recipients of Newstart, disability support pensions, carers’ allowance, veteran support payments, commonwealth senior health card-holders, youth allowance and family tax benefits. Up to 2.4 million aged pensioners will also be receiving the cash payments.
It is the government’s hope that recipients of the $750 cash payments will spend the money in order to bring the soft Australian economy out of a potential recession. Individuals are particularly encouraged to spend the money as soon as they can, for economists to see positive growth in the Australian economy by the June quarter of this year. Consistent cash payments will also be given to aged pensioners, averaging $219 a year.
In addition to the cash payment schemes for pensioners and welfare recipients, the Australian government has also answered calls for better payment strategies for casual workers who may need to take leave due to COVID-19. Hence, as part of the coronavirus stimulus package, casual workers who need to self-isolate will receive immediate access to sickness payments.
In order to further stimulate the economy through financial investments, lower deeming rates are being cut from 1% to 0.5% for investments up to $51 800 for single pensioners and $86 200 for pensioner couples. Furthermore, for the upper rate, rates will decrease from 3% to 2.5%.
The coronavirus stimulus package, while mainly targets growth and retainment of small businesses, thus also concerns individuals and individual monetary matters. It is important to note the economic input changes the government is currently implementing in light of the coronavirus and how best to manage your additional funds if you are a recipient of the pensioner or welfare cash payment.