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What's in the second coronavirus stimulus package for you

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Pensioners, carers and Newstart recipients are among about 5 million vulnerable Australians who will receive a second $750 payment.

The government yesterday announced a further $66 billion in economic stimulus, hot off the heels of the initial $17.6 billion package released last week. Like the first, this package targets households and small to medium sized businesses.

The government will provide a second $750 from July 13, 2020, for those receiving one of the below payments, or have an eligible concession card on July 10, 2020:

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  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Carer Allowance
  • Parenting Payment
  • Wife Pension
  • Widow B Pension
  • ABSTUDY (Living Allowance)
  • Austudy
  • Bereavement Allowance
  • Newstart Allowance
  • Youth Allowance
  • Partner Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Farm Household Allowance
  • Family Tax Benefit A
  • Family Tax Benefit B
  • Double Orphan Pension.
  • You'll also get it if you hold one of the following cards:
  • Pensioner Concession Card
  • Commonwealth Seniors Card
  • DVA Gold Card.

Or if you get one of the following Department of Veterans' Affairs payments:

  • Veterans Service Pension
  • Veteran's Income Support Supplement
  • Veterans' Compensation payments
  • War Widow(er) Pension.

Moreover, those receiving one of the following payments will get an extra $550 a fortnight on top of their regular payments:

  • JobSeeker Payment
  • Youth Allowance for job seekers
  • Parenting Payment
  • Farm Household Allowance
  • Special Benefit.

Super and retirees

Those experiencing financial stress due to the coronavirus will be allowed to dip into their super - up to $10,000 in 2019-20 and a further $10,000 in 2020-21.

The drawdown rate for retirees has also been cut by 50% for 2019-20 and 2020-21.

Meanwhile, the deeming rate has been cut by a further 0.25%, consistent with last week's rate cut by the RBA. The lower deeming rate will now be 0.25% while the upper deeming rate will be 2.25%.

Small and medium businesses

The government will guarantee 50% of new loans issued by eligible lenders to small and medium-sized enterpises (SMEs), thereby guaranteeing up to $20 billion to support $40 billion in SME loans. It's also raising the threshold at which creditors can issue a statutory demand on a company.

Accessing payments

The payments will be automatically processed for those already receiving payments, so no need to set up anything further.

However, if you're signing up for payments for the first time, you'll need to set up a MyGov account, and link it to Centrelink.

We're cutting through the confusion to help you manage your money during the coronavirus outbreak. Click here for more on how COVID-19 could affect your job, budget, super and investments.

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David Thornton is a journalist at Money magazine. He previously worked at Your Money, covering market news as producer of Trading Day Live. Before that, he covered business and finance news at The Constant Investor. David holds a Masters of International Relations from the University of Melbourne.
Comments
Kathy Smith
March 27, 2020 4.41pm

I became a widow last year. My husband and I were part pensioners based on our combined government pension income. When he died I got about $20,000 of his govt. pension taking me over the single pensioner limit re income, as I also received a part government pension as he had. The aged pension was taken away from me as I just went over the limit, but I live on about $35000 less each year and cost of apartment living is still the same. Expenses are very difficult to pay now. I don't appear to quality for any assistance at all. Is there something in the government handouts for widows (or widowers) living on their own? Am i likely to be eligible for other pension types now?

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