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$250-$10k: 6 ways to get a cash payment before Christmas

Close-up, senior female hands taking Australian banknotes (cash, currency) from purse containing many credit cards.
$250-$10k: 6 ways to get a cash payment before Christmas. Source: Getty

We might be officially out of recession, but it sure doesn’t feel like it to many Aussies.

National accounts figures showed economic growth of 3.3 percent in the three months to end-September, after a record fall of 7 percent to end June.

We appear to be renovating and retail spending our way out of this coronavirus crisis; forking out nearly 8 percent more on goods and services, which fell only in locked-down Victoria.

While the news for the quarter is good, year-on-year what’s called our gross domestic product is still 3.8 percent down and household spending, 6.5 percent lower.

But regardless, the outlook for Australia’s economic recovery and, particularly, the employment rate has vastly improved. From forecasts of a 10 percent peak, Reserve Bank governor Dr Philip Lowe now expects it to peak below 8 percent.

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Giving evidence to the Federal government’s standing economics committee on Wednesday, he said: “The bounce back has been quicker than we’d hoped, and if we get good news on the vaccine, then I think we could look forward to that continuing.”

But we all still have to get through Christmas. And a Covid-affected one at that.

So what handouts are there to help while we wait for this promised return to prosperity - and while also facing a fall in JobSeeker to $40 a day after March and a scheduled end altogether to JobKeeper?

1. $250 coronavirus cash before Christmas

Now you need to be in receipt of a welfare payment to get this; included are all pensioners, veterans, carers, people on family tax benefits and Commonwealth Seniors Health Cardholders.

And it’s part of a total $500 that was announced in the Budget. You’ll get a second instalment in March.

If you are working, you have also seen a small tax cut trickle through by now. But you’ll need to earn $37,000 of more for this to be meaningful.

2. JobKeeper or JobSeeker? You can claim both!

Both emergency payments were reduced on September 28, by a typical $300 to – again – try and keep payments fair.

To achieve this for the unemployed on JobSeeker, the temporary coronavirus supplement was cut from $550 to $250.

JobKeeper was cut by $300 too, but in the interests of even-handedness, a second tier was introduced for people who previously worked less than 20 hours a week (averaged over four weeks). To redress the fact that some initially received a pay rise, they now get just $750.

The good news is that the coronavirus supplement on JobSeeker will now continue until the end of March, albeit at a rate reduced from January 1 by another $100: $150.

Meanwhile, JobKeeper is set to also fall again from January 4, to $1000 per fortnight for full-time workers and $650 for part-time.

Your employer also has to re-qualify each quarter.

But yes, Treasury has confirmed to Yahoo Finance that it is possible to claim both at the same time.

This is partly because you can now earn an extra $300 without affecting JobSeeker benefits.

Someone receiving JobKeeper’s $1200 a fortnight today might also be able to claim $276 of JobSeeker. This would bring their total government support payments very close to the $1500 JobKeeper original.

What about the JobKeeper now-part-timers? They could top up their $750 a fortnight by another $546. to a total of $1,295.

Said social services Minister Anne Rushton recently: “I would encourage any Victorian, or Australian for that matter, who is concerned about changes to their employment or has had their income reduced, to test their eligibility for JobSeeker or related payments.

“Our social security safety net is not just for people who have lost their jobs, it is able to provide a cushion for people who have had or fear their hours or income will be reduced.”

Of course, you need to report all your income, including JobKeeper, to Centrelink.

3. The interest-free loan scheme – for real

But what if something goes wrong, like your car engine blows or fridge packs it in… if you have what I call a ‘Holy Sh*t’ moment but don’t have a Holy Sh*t Fund (I recommend preferably six months of salary, sitting in an offset account beside your mortgage if you have one).

First and most importantly, you do not have to throw yourself on the mercy of an extortionate payday lender or rent-to-buy scheme.

This could end up costing you many many times the price tag of a good. (Note, there are currently – albeit slow – moves to curb the costs of these predatory outfits.)

You can instead access, through a network of hundreds of financial counsellors around Australia, a no-or low-interest loan.

No, borrowing is not ideal. But if it gets you out of a short-term drama and saves you reaching for a far-more-expensive credit card, it may be OK.

4. Ask for hardship help to get you through the rough patch

It’s counter intuitive, but if you are going to struggle to pay bills, don’t wait until it actually happens. Go to your provider and explain.

Every lender, utility, insurer and telco must have a designated hardship department, to help customers who have become cash-strapped. What’s more, at the moment, these departments are more understanding than ever.

They’ll come up with a manageable repayment plan and perhaps even discount your service.

5. See a financial counsellor

The most important thing to remember is that you are not alone. There is help at hand…and it’s free.

If you need help, even if it’s simply to organise some of the above, contact Australia’s central National Debt Helpline register on ndh.org.au or 1800 007 007.

As part of the COVID rescue packages, the government has dramatically boosted funding for these services.

Not only will they interrogate your finances to see what wriggle can be found, they will mediate and advocate for you with everyone from your bank to Centrelink.

6. Access your super

As an option of very much last resort, you can access $10,000 of your super until the end of this year. You’ll qualify – and be warned that the Tax Office is on the war path for people who take out the $10,000 but aren’t eligible – if you have lost your employment or have seen your hours drop by 20 per cent.

Just be aware that modelling by Industry Super Australia shows that if you have already taken $10,000 last financial year, that total $20,000 you tap will cost you five times that amount at retirement: $100,000

A final word

Know that you are not alone in contending with Covic craziness this Christmas. If yours is a little more low-key than usual, everybody understands!

Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com. Follow Nicole on Facebook, Twitter and Instagram.

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