Australians can get thousands of dollars in government support to help them though the coronavirus crisis – and millions are already cashing in.
Someone who receives the JobKeeper payment, uses free childcare, draws from their super and negotiates a rent reduction could access up to $45,000 in financial support.
The JobKeeper wage will provide a furloughed employee with $18,000 over six months – and casuals who earn less than $1,500 a fortnight but have been working for an employer for at least a year will even see their wages increase.
The free childcare scheme, which applies to all parents regardless of their jobs, could save a working family around $2,000 per child over the next three months.
A small group of children play at the Robertson Street Kindy Childcare Centre in Helensburgh south of Sydney on April 3
Meanwhile, a new tax system for people working from home could reduce a worker’s taxable income by around $550 over three months – and an instant assent write off expansion could reduce a businessman’s taxable income by $150,000.
Millions of Australians are getting cash handouts of $750 and small business owners can get grants of up to $100,000.
Various states governments have also introduced plans to freeze or reduce residents’ power bills by up to $200, and Australians can take $20,000 from their super.
Furthermore, hundreds of Australians have privately negotiated rent reductions with their landlords. A rent reduction of 50 per cent for someone paying median rent of $418 per week would save an additional $5,668 over six months.
The level of financial help people are entitled to depends on their individual circumstances. Here Daily Mail Australia outlines what’s on offer.
Free childcare
Scott Morrison has announced that childcare will temporarily become free to help families through the coronavirus crisis.
The government will pay 13,000 childcare centres 50 per cent of their fee revenue and in return the centres must stay open and not charge parents.
The scheme, which will last for at least three months, will cost $1.6 billion and will benefit about one million families.
Free childcare will be available to all parents regardless of their job but if places fill up centres will prioritise essential workers such as doctors and nurses.
The scheme will be reviewed after three months and may be extended for a further three months. After the pandemic, the system will revert back to normal.
A parent who pays $34 a day on full-time childcare after subsidies would save $2,040 over three months.
Bloodwood co-owner and head chef Claire Van Vuuren and sous chef India Hocking prepare take away meals inside their Newtown restaurant on March 30
JobKeeper scheme
The Prime Minster announced an extraordinary plan to pay the wages of six million Australians for six months.
Workers at companies hit by the coronavirus shut down will be paid a flat rate of $1,500 per fortnight.
The money will be given from the tax office to the companies, who have a legal obligation to pass it on to their employees.
The $130 billion scheme is designed to keep workers connected to their employers so the economy will rebound faster when the coronavirus crisis is over.
Payments via the ATO will be made to businesses, sole traders and not-for-profit organisations whose revenues decrease by 30 per cent or more due to the coronavirus fallout.
The payment will go to full-time workers, part-time workers and casual workers who have been employed by a company for 12 months, regardless of how many shifts they worked.
This means that workers who previously earned less than $1,500 per week will get a payrise if their company uses the scheme.
Cash handouts
The federal government has announced huge support for households, including handing out $750 to individuals through the ATO.
Recipients on Newstart, the disability support pension, carers’ allowance, youth allowance, veterans support payments, family tax benefits and Commonwealth senior health card-holders are eligible.
Australia’s 2.4million aged pensioners are also getting the payment.
The payments began automatically on 31 March and will be delivered by mid-April.
People queue to enter Centrelink on March 24, 2020 in Melbourne as thousands of jobs were axed
Additionally, South Australia has announced it will pay every resident receiving the JobSeeker payment an extra $500 as a one-off payment – and Tasmania is giving people $250 if they have to self-isolate.
Business owners can also benefit from federal cash grants.
The federal government is handing out tax-free cash grants of up to $100,000 for small businesses and charities who turn over less than $50million and employ people, costing $32billion.
On top of that, the New South Wales government will hand out $10,000 cash grants to small businesses affected by coronavirus restrictions.
Businesses that employ between one and 19 workers and turn over $75,000 a year can apply through Service NSW.
Household bills
In Queensland, homeowners and renters will receive $200 off their utility bills while sole traders and small businesses will receive a $500 rebate on their power bill for the year.
The Western Australia government has vowed that power and water disconnections will not occur, and interest will not be charged on deferred payments until 30 September 2020.
There is a one-off $2,500 credit on electricity bills for 95,000 small businesses, available for those that consume less than 50MWh per year.
Household fees and charges, including electricity, water, motor vehicle charges, emergency services levy and public transport fares have been frozen.
Various states have introduced plans to freeze or reduce residents’ power bills
Tasmania has a freeze on all power, water and electricity prices for homes and small businesses and the waiving of first quarter utility bills for all small businesses.
The ACT has frozen vehicle registration, public transport fares and parking fees.
Residential ratepayers will be given $150 and people on utilities concession will get a $200 rebate.
Small businesses will get a $750 rebate through their next electricity bill.
In the Northern Territory all regular increases to government fees and charges, including electricity costs have been put on hold.
Rent relief
Tasmania and New South Wales have temporarily banned evictions for residential renters.
All state governments have urged landlords and tenants to reach agreements on rent reductions.
Sarah Draeger, a 26-year-old unemployed childcare worker from Melbourne, told Daily Mail Australia she was able to negotiate a 50 per cent rent reduction for three months, prompting hundreds of others to do the same.
Sarah Draeger (pictured), 26, an unemployed childcare worker from Melbourne , said she was able to negotiate a 50 per cent rent reduction for three months
A commercial tenancies code of practice which will be enforced by all state and territory governments.
It stipulates that landlords must provide rent relief, in the form of waivers and deferrals, to tenants who are using the JobKeeper scheme.
The amount of the rent reduction must be proportional to the revenue lost by the tenant due to COVID-19. At least half of the reduction must be a waiver not a deferral.
JobSeeker
The government has doubled the JobSeeker payment by an extra $550 per fortnight for the duration of the coronavirus crisis – and made this available to students.
Superannuation
There are also changes to superannuation which allow anyone to make a tax-free early withdrawal of up to $20,000.
Also, the minimum amount that pensioners have to take out of their super each year has been cut from 5 per cent to 2.5 per cent for the next two years.
Asset write-offs
Instant asset write offs have been expanded meaning a worker can buy equipment worth $150,000 and deduct it from their taxable income until 30 June.
The previous limit was $30,000.
Working from home
The Australian Taxation Office has announced those working at home will be able to claim 80 cents an hour between March 1 and June 30.
They will only have to record the hours they have worked at home instead of adding up specific expenses like electricity and internet connection.
It means a person working eight hours a day from home over this whole period can reduce their taxable income by around $550.
The Australian Taxation Office has announced those working at home will be able to claim 80 cents an hour between March 1 and June 30.