Second $750 coronavirus payment to hit bank accounts from this week
The federal government's second Economic Support Payment of $750 is due to hit bank accounts this week.
The tax-free payment, which is estimated to pump an extra $4 billion into the economy, is part two of the stimulus measures announced in March.
You're eligible for the payment if you receive the Age Pension, Bereavement Allowance, Carer Allowance, Carer Payment, Commonwealth Seniors Health Card, Disability Support Pension, Double Orphan Pension, Family Tax Benefit A, Family Tax Benefit B, or Pensioner Concession Card.
The payment will be paid automatically to people with an eligible concession card from July 13, based on their usual payment schedule.
According to Treasurer Josh Frydenberg, it's an important support for people doing it tough during the pandemic.
"Some people will save it and some will spend it, but previous experiences shows it's going to meet the daily bills that people are incurring," he says.
Frydenberg suggests that around 37% of Australians aged under 65 who received the first payment were adding it to their savings while those over 65 were saving proportionately higher amounts.
People receiving the Coronavirus Supplement of $550 a fortnight will not be eligible for the $750 payment.
The Coronavirus Supplement is paid to people receiving the Partner Allowance, Sickness Allowance, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment, Farm Household Allowance, and Special Benefit.
This supplement will continue to be paid automatically until September 24, 2020, as part of the usual pension payment.
Money Mode financial adviser Renae Vercoe says, as with any income, people should:
- Pay down debt - any credit card debt, personal loans or after payment type services should be the first things to go. Try and reduce these and break the pattern of spending on debt.
- Put it towards emergency funds - give yourself a buffer if unexpected expenses arise.
- Plan out your budget carefully and put towards your essentials first and then only items that you really need.
- Invest it for your future by putting it into a separate account that is building towards your savings goals.
"Whilst people are free to do what they wish with the stimulus, the spirit of it is to inject funds into our economy and provide much needed support for small to medium businesses," says Vercoe.
"And if you can afford to give any money to a worthy charity, then that is also a really good thing to do, because they are suffering through this too.
"But always remember to look after your own financial wellbeing first and foremost and put the money to good use by spending in line with your needs and goals."
Get stories like this in our newsletters.