Early access to super due to COVID-19 has now ended. Other Government initiatives are ending soon. What does this mean for individuals and businesses?
During the COVID-19 pandemic the impact on businesses, employment and the economy has meant that many Australians have needed financial assistance from the Government and financial institutions to make ends meet.
However, with much of this financial assistance having already ended on 31 December 2020, or ending soon, what does this mean for individuals and businesses?
Two of the most accessed initiatives ending on 28 March and 31 March 2021, respectively are:
The Government extended both of these measures beyond the original September 2020 date to late March 2021, with reduced payment amounts. At this point in time, there have been no announcements indicating that these payments will continue beyond March 2021, meaning that once these payments stop, employers will need to rely on their business profits to allow them to continue to employ their staff.
Individuals who are unemployed, will have to rely on the basic JobSeeker payment which for a single person with no children is $565.70 per fortnight.
The HomeBuilder initiative is also set to end on 31 March 2021. It provides eligible owner-occupiers with a grant to build a new home or substantially renovate an existing home. This not only assists individuals, it also supports the residential construction sector by encouraging people to build new homes or spend on home renovations.
On 29 November 2020, the Government announced an extension to the HomeBuilder program with some changes.
How does it work?
To avoid missing out on this opportunity, make sure you apply before 14 April 2021 to your State Revenue Office.
The JobMaker Hiring Credit gives employers incentives to take on additional young job seekers on a permanent, casual or fixed‑term basis. This incentive will help both employers and young people as the economy recovers. It is available to employers for each new job they create over 12 months, starting from 7 October 2020. Employers will be able to apply for up to $200 a week for each additional eligible employee they hire aged 16 to 29 years old and up to $100 a week for each additional eligible employee they hire aged 30 to 35 years old.
Early access to super due to financial hardship
Although early access to super, due to the impact of the COVID-19 pandemic ended on 31 December 2020, there are other ways you can apply to access your super early. These include access on compassionate grounds or access due to severe financial hardship, due to a terminal medical condition or permanent incapacity.
If you or a loved one is struggling financially, please contact your financial adviser for some expert guidance.
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