COVID-19 financial support measures

COVID-19 financial support measures update

While there appears to be a light at the end of the tunnel (eg restrictions to be gradually wound back based on reaching certain vaccination thresholds), uncertainty and cautiousness still remain.

And, unfortunately, as we navigate our way through this pandemic, there is the potential for some of us to experience (or continue to experience) varying degrees of financial difficulty.

The present financial impact of COVID-19 on some individuals and businesses can be somewhat linked to our present movements. Google’s ‘COVID-19 Community Mobility Reports’^ may provide some insights here.

Google’s ‘COVID-19 Community Mobility Reports’: Australia (7 October 2021)
Key place categories	Key place inclusions	Movement change*
Retail & recreation	Places such as restaurants, cafés, shopping centres, theme parks, museums, libraries & cinemas.	-20% compared to baseline.
Supermarket & pharmacy	Places such as supermarkets, food warehouses, farmers markets, specialty food shops & pharmacies.	+5% compared to baseline.
Parks	Places such as national parks, public beaches, marinas, dog parks, plazas & public gardens.	-5% compared to baseline.
Public transport	Places that are public transport hubs, such as underground, bus & train stations.	-58% compared to baseline.
Workplaces	Places of work.	-23% compared to baseline.
Residential	Places of residence.	+12% compared to baseline.

*The baseline is the median value, for the corresponding day of the week, during the five-week period 3 Jan-6 Feb 2020.

In light of this, below is a brief overview of two key Government COVID-19 financial support measures currently in place for eligible individuals: the COVID-19 Disaster Payment and the Pandemic Leave Disaster Payment.

COVID-19 Disaster Payment

Overview

The COVID-19 Disaster Payment is a tax-free lump-sum payment to support individuals adversely affected by a state or territory COVID-19 public health order (eg lockdown, hotspot or movement restrictions).

In terms of making a claim (via myGov), there are specific claim periods. However, subject to meeting the claim submission closing date for a claim period, a claim can be made in retrospect.

Please see the below table as an example of this with regard to the ACT, NSW and VIC.

COVID-19 Disaster Payment: Claim timeframes
State/territory	Claim period (one example)	Claim submission opening date	Claim submission closing date
ACT	24 to 30 September 2021	1 October 2021	21 October 2021
NSW	26 September to 1 October 2021*	26 September 2021	23 October 2021
VIC	24 September to 30 September 2021^	1 October 2021	21 October 2021

*In relation to Greater Sydney and all other areas of NSW, excluding parts of Sydney (a different claim period applies here).

^In relation to Greater Melbourne, excludes Shepparton and all other areas of VIC.

In relation to those not receiving an income support payment, the table below has more details on the COVID-19 Disaster Payment from a state and territory perspective.

COVID-19 Disaster Payment: Claim status, eligibility criteria and payment amount (Non-recipients of Centrelink or DVA payments)
State/territory	Claim status	Individual eligibility criteria	Payment amount
ACT	Open	Australian resident or hold a visa providing the right to work in Australia. Aged 17 years or older. Non-receipt of an income support payment, Dad and Partner Pay, Parental Leave Pay or ABSTUDY Living Allowance during the claim period. Non-receipt of the Pandemic Leave Disaster Payment, a territory pandemic payment or a territory small business payment for the claim period. Loss of hours of work and income and no pandemic-related paid leave entitlements. Inability to earn usual income of 8 hours or more, or a full day’s work due to presence in an ACT COVID-19 hotspot and subject to a restricted movement order. Non-receipt of usual income and employer not receiving Retaining Domestic Airline Capability payments on their behalf. Lived or worked in or visited a Commonwealth-declared COVID-19 hotspot in the ACT subject to a restricted movement order.	$450 if any of these apply: Loss of at least 8 hours of work Loss of less than 20 hours of work Inability to work a full day* for that week. $750 if loss of 20 hours or more for that week.
NSW	Open	Similar conditions as ACT.	Similar conditions as ACT.
VIC	Open
NT	Closed
QLD	Closed
SA	Closed

*A full day of an individual’s usual work is what they were scheduled to work but could not because of a restricted movement order. This includes not being able to attend a full-time, part-time or casual shift of less than 8 hours.

Those in receipt of an income support payment may still be eligible for the COVID-19 Disaster Payment, however, a different eligibility criteria and payment amount applies, as outlined in the table below.

COVID-19 Disaster Payment: Claim status, eligibility criteria and payment amount (Recipients of Centrelink or DVA payments)
State/territory	Claim status	Individual eligibility criteria	Payment amount
ACT	Open	Aged 17 years or older. Receipt of an income support payment or ABSTUDY Living Allowance*. Non-receipt of the Pandemic Leave Disaster Payment, Dad and Partner Pay, Parental Leave Pay, a territory pandemic payment or a territory small business payment for the claim period. No pandemic-related paid leave entitlements. Reported employment income at least once on or after 19 June 2021^ or had declared ongoing employment income on or after 19 June 2021^. Inability to earn usual income of 8 hours or more, or a full day’s work# due to presence in an ACT COVID-19 hotspot and subject to a restricted movement order. Non-receipt of usual income and employer not receiving Retaining Domestic Airline Capability payments on their behalf. Lived or worked in or visited a Commonwealth-declared COVID-19 hotspot in the ACT subject to a restricted movement order.	$200 each week (on top regular Centrelink or DVA payment).
NSW	Open	Similar conditions as ACT.	Similar conditions as ACT.
VIC	Open
NT	Closed
QLD	Closed
SA	Closed

*For example, Age Pension, Carer Payment, Disability Support Pension, JobSeeker Payment, Parenting Payment, Service Pension, Veteran Payment. An individual may also be eligible if they receive, for example, the Farm Household Allowance.

^The reportable employment income date is on or after 29 April 2021 (for NSW), 23 June 2021 (for NT), 7 June 2021 (for QLD), or 12 June 2021 (for VIC).

#A full day of an individual’s usual work is what they were scheduled to work but could not because of a restricted movement order. This includes not being able to attend a full-time, part-time or casual shift of less than 8 hours.

For more information on the COVID-19 Disaster Payment, and the specific state and territory claim periods (inclusive of claim submission opening and closing dates), please visit the Services Australia website.

Please note: In terms of future financial support via the COVID-19 Disaster Payment, according to a recent announcement by Treasurer Josh Frydenberg, and now stated on the Services Australia website:

• When a state or territory reaches 70% double-dose vaccination rates for individuals aged 16 years or older:
  • Automatic COVID-19 Disaster Payments (after an individual’s initial successful claim, and no change in circumstances) will discontinue.
  • If an individual’s income is still affected by movement restrictions, then they need to reapply for the COVID-19 Disaster Payment each week to confirm their continued eligibility.
• When a state or territory reaches 80% double-dose vaccination rates for individuals aged 16 years or older:
  • The first week after, the COVID-19 Disaster Payment will be $450 for individuals not receiving a relevant income support payment (and $100 for those that do).
  • The second week after, the COVID-19 Disaster Payment will be $320 for individuals not receiving a relevant income support payment (and NIL for those that do).
  • After this period, there will be no more applications for the COVID-19 Disaster Payment even if an individual’s area is affected by movement restrictions.

Pandemic Leave Disaster Payment

Overview

The Pandemic Leave Disaster Payment is a taxable lump-sum payment to support individuals who cannot work and earn income because they are:

• caring for someone with COVID-19, or
• directed by a state or territory health official to self-isolate or quarantine as a result of COVID-19 for any of the following reasons. The individual:
  • has COVID-19
  • has been in close contact with another who has COVID-19
  • cares for a child (16 years or under) who has COVID-19
  • cares for a child (16 years or under) who has been in contact with another who has COVID-19.

An individual may also be eligible if they are caring for someone who has COVID-19.

Claims can be made directly via Services Australia, either over the phone or fax.

Please note: Given the taxable nature of the Pandemic Leave Disaster Payment, this may have implications in terms of the Family Tax Benefit and Child Care Subsidy, as well as with regard to Child Support assessments.

The below table has more details on the Pandemic Leave Disaster Payment from a state and territory perspective.

Pandemic Leave Disaster Payment: Claim status, eligibility criteria and payment amount
State/territory	Claim status	Individual eligibility criteria	Payment amount
ACT	Open	Australian resident or hold a visa giving right to work in Australia. Aged 17 years old or older and live in the ACT. Non-receipt of an income support payment, Dad and Partner Pay, Parental Leave Pay or ABSTUDY Living Allowance during the isolation period*. Non-receipt of the COVID-19 Disaster Payment or ACT COVID-19 Hardship Isolation Payment^ for claim period Inability to go to work and earn an income during the isolation period. Non-receipt of income, earnings or salary from paid work during the isolation period. No sick leave entitlements, including pandemic sick leave, personal leave or leave to care for another individual.	$1,500 for each 14 day period the individual is directed to self-isolate or quarantine, or is caring for someone who has COVID-19.
NSW	Open	Similar conditions as ACT.	Similar conditions as ACT.
VIC	Open
NT	Open
QLD	Open
SA	Open
TAS	Open
WA	Open

*The period of quarantine is on or after 17 September 2020 (for NSW), 7 October 2020 (for QLD), 10 September 2020 (for SA), 22 August 2020 (for TAS), 5 July 2020 (for VIC), or 11 September 2020 (for WA).

^Comparatively: NSW Test and Isolate Payment (for NSW); Queensland Hardship Payment (for QLD); payment under the South Australian Paid Pandemic Leave Scheme (for SA); payment under the Tasmanian Pandemic Isolation Grant (for TAS); and, Victorian Coronavirus (COVID-19) Worker Support Payment (for VIC).

For specific advice customised to your individual circumstances, contact Carrick Aland’s Wealth planning team on 1300 466 998 or visit carrickaland.com.au/wealth-planning/.

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*Center for Systems Science and Engineering (CSSE). GIS Dashboard: Coronavirus COVID-19 Global Cases by Johns Hopkins CSSE.

^Google LLC. (2021). Google COVID-19 Community Mobility Reports: Australia, October 2021.