Coronavirus Support Package - Individuals

On the 22nd March 2020 the Australian Federal Government announced its Economic Response to the Coronavirus (the Coronavirus Support Package).

Note that as legislation has yet to be finalised in relation to the Support Package, we are unable to comment as to its final form, and what further requirements (if any) will need to be satisfied in order to qualify.

Of the measures announced, the following are the most relevant to individuals:-

LAST UPDATED 23 MARCH 2020

Increased and Accelerated Income Support

On the 22nd March 2020 the Government announced that it is temporarily expanding the eligibility criteria to access certain income support payments as well as establishing a new time-limited Coronavirus Supplement to be paid at a rate of $550 per fortnight.

The income support payment categories eligible to receive the Coronavirus supplement are:-

Jobseeker Payment
Youth Allowance Jobseeker
Parenting Payment
Farm Household Allowance
Special Benefit recipients

For the period of the Coronavirus supplement, the Government will expand the eligibility criteria to access certain income support payments:-

Expanded access to the Jobseeker Payment and Youth Allowance Jobseeker payments;
Reducing means testing on Jobseeker Payment, Youth Allowance Jobseeker and Parenting Payments by waiving the Asset Test requirements;
Reduced waiting times.

Note that anyone eligible for the Coronavirus Supplement will receive the full supplement of $550 per fortnight.

Payments to Support Households

On the 22nd March 2020 the Government announced that it will introduced a second $750 payments for taxpayers in receipt of certain social security payments.

The first payment (announced on 12 March 2020) is expected to be paid from 31 March 2020, while the second payment (announced on 22 March 2020) is expected to be paid from 13 July 2020.

Reduction in the Superannuation Minimum Drawdown Requirements

The Government has announced that they will be temporarily reducing the minimum superannuation drawdown requirements by 50% for the 2019/20 and 2020/21 income years.

The below table shows the adjusted minimum drawdown rates:-

Age	Default Rates	Adjusted Rates
Under 65	4.0%	2.0%
65 to 74	5.0%	2.5%
75 to 79	6.0%	3.0%
80 to 84	7.0%	3.5%
85 to 89	9.0%	4.5%
90 to 94	11.0%	5.5%
95 or more	14.0%	7.0%

Early Access to Superannuation

On the 22nd March 2020 the Government announced that certain individuals will be able to access their superannuation early. Eligible individuals will be able to access up to $10,000 before 1 July 2020 and a further $10,000 for approximately three months from 1 July 2020.

In order to be eligible to access your superannuation early, you would need to satisfy at least one of the following requirements:-

You were made redundant;
Your working hours have been from 1 July 2020 reduced by 20% or more;
If you are a sole trader and your business was suspended or there was a reduction in turnover over 20% or more.

Individuals accessing their superannuation will not need to pay tax on amounts released, and the money withdrawn would not affect their Centrelink payments.

Changes to Social Security Deeming Rates

On the 22nd March 2020 the Government announced a further 0.25% reduction to the deeming rate for the Income Test in relation to accessing social security payments, this is in addition to the 0.5% reduction announced on 12 March 2020.

As of 1 May 2020, the upper deeming rate will be 2.25% and the lower deeming rate will be 0.25%. This combined with the Increased and Accelerated Income Support discussed above should provide increased access to social security payments for individuals.