As the coronavirus pandemic causes massive economic disruption across the globe, increasing numbers of Australians are turning to welfare payments to help pay their rent and buy essential items.
In response, the Federal Government has made it easier for people to access welfare by introducing new benefits, increasing the rate of existing payments and expanding eligibility criteria.
So how exactly do the new measures work, and who’s eligible for them?
JobKeeper payment
is a $130 billion wage subsidy scheme that the Federal Government says will benefit an estimated six million Australian workers over the next six months.
It should not be confused with the JobSeeker payment, formerly known as Newstart, for people who were already out of work before the pandemic hit.
The benefit applies to workers who face losing their job or had already been let go because of the impact of coronavirus on their employer since 1 March.
It's designed to encourage employers to keep workers on the books and bring full-time staff back on when restrictions are lifted.
It works by providing eligible businesses with $1,500 per fortnight per employee.
In order to receive the payment, which the Federal Government said equated to about 70 per cent of the median full-time wage, both the employer and employee must meet eligibility criteria.
- if they can demonstrate that their revenue has dropped by 30 per cent compared to the same time last year. Businesses with a turnover of more than $1 billion need to prove their revenue has declined by more than 50 per cent.
- include full and part-time workers, as well as sole traders. Employees that lost jobs at businesses that shut down due to social distancing measures will continue to be paid even if they are not working.
As of Tuesday afternoon, casual workers are only eligible if they have been in the same job for more than 12 months. There have been calls to see the and all casual workers.
Payments won’t flow until early May, but it will be backdated to Monday.
Almost 60,000 businesses had signed up for the scheme on Monday afternoon.
New Zealanders working in Australia, who don't usually have access to the welfare system, . Other temporary visa-holders are currently ineligible but Prime Minister Scott Morrison said on Monday that matter was “under consideration”.
Prime Minister Scott Morrison announces the government's $130b wage subsidy package at a press conference at Parliament House Source: AAP
Coronavirus Supplement
The JobKeeper package is the latest element of the government's financial support and comes after last week's announcement of a top-up payment for people already receiving welfare.
The so-called Coronavirus Supplement is worth $550 a fortnight and will come into effect for six months on 27 April.
From that date, the extra money will be automatically added to the payments of anyone receiving:
- JobSeeker payment
- Sickness Allowance
- Youth Allowance
- Parenting Payment (both partnered and single)
- Partner Allowance
- Farm Household Allowance
- Austudy
- ABSTUDY
The application of the supplement to the JobSeeker payment is notable because it comes after years of refusal by the Federal Government to raise the rate permanently.
JobSeeker benefits will effectively be doubled from 27 April, with a single person without a child eligible to get about $1,100 per fortnight.
The Coronavirus Supplement does not apply to people receiving the Disability Support Pension or the Carer Payment.
Economic Support Payment
The tax-exempt Economic Support Payment is a one-off $750 stimulus measure the Federal Government says over six million Australians will get.
Eligible recipients include anyone already receiving welfare payments and those new to Centrelink as long as they apply by 13 April.
Like the Coronavirus Supplement, the Economic Support Payment will automatically be paid to eligible recipients.
It’s been flagged that existing welfare recipients who can’t access the Coronavirus Supplement, such as those receiving the Disability Support Pension or the Carer Payment, could get a second Economic Support Payment later in the year.
Changes to existing payments
A host of changes have also been made to existing benefits to help coronavirus-hit workers.
Eligibility and qualification criteria for the JobSeeker payment and Youth Allowance, for example, have been relaxed.
From 27 April, both payments will become available to:
- A permanent employee who has been stood down
- A sole trader, self-employed, casual or contract worker now earning less than $1,075 as a result of economic downturn
- Carers for a person who has COVID-19 or is in isolation due to contact with it
A person cannot receive both the JobKeeper and JobSeeker payments.
However, income threshold changes announced on Monday mean an applicant's rate of JobSeeker benefits now won't be affected unless their partner earns more than $79,762 per year, up from the previous $48,000 threshold.
Assets tests have also been temporarily waived for various payments, as have the Seasonal Workers Preclusion Period and the Newly Arrived Residents Waiting Period.
People are seen queueing outside the Centrelink office in Southport on the Gold Coast. Source: AAP
Requirements to provide Centrelink with an Employment Separation Certificate, proof of rental arrangements and verification of relationship status have also been temporarily removed.
People in Australia must stay at least 1.5 metres away from others and gatherings are limited to two people unless you are with your family or household.
If you believe you may have contracted the virus, call your doctor (don’t visit) or contact the national Coronavirus Health Information Hotline on 1800 020 080.
If you are struggling to breathe or experiencing a medical emergency, call 000.
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