Bluebird News

It’s all a bit overwhelming right now, but it’s important to try and stay positive. Today we’re talking about ways to secure your financial safety during this uncertain time. There’s a lot that is out of your control, but there is a lot you can do to help your finances right now.

Firstly, the Bluebird Accounting team is now a virtual office and all team members are working remotely now. This means that face-to-face meetings have been suspended for now.

This doesn’t change any of the services that we provide to you, we’re working hard on strategies and plans to assist all our clients. Rest assured we’re here to assist and support your financial happiness at this time. We’re just a phone call or email away.

The government continues to announce various stimulus packages to help cushion the blow of Covid-19 for businesses and individuals. There’s a lot to unpack, so we’ll be sending you 2 emails. This first one is about the Stimulus package and what it means for individuals. The next one will go through the stimulus package and what it means to businesses. You may fall into both categories or know someone that needs this information.

First, let’s discuss what’s in the STIMULUS for individuals:

Coronavirus Supplement

Beginning 27th April 2020, for a 6 month period, an additional $550.00 fortnightly payment is available for individuals that are eligible for:

• Job Seeker payment
• Youth allowance
• Parenting payment (Single, Partnered)
• Sickness allowance
• Farm household allowance
• Partner allowance

This includes new and existing recipients of these allowances.

TIP: Even if you qualify for just $1.00 of these allowances, you’ll receive the supplement.

Expansion for access to income support payments

Also commencing 27 April, eligibility for Jobseeker payment and Youth allowance will be expanded for 6 months. This includes expanding eligibility to:

• Sole traders and self-employed people – with a mutual obligation to continue their business.   
• Individuals caring for someone infected or in isolation as a result of contact with the virus

This extends and includes those who have been stood down, lost employment, casual workers and contract workers who meet the income tests.

In addition, the government will waive the assets test, the ordinary waiting period and a couple of other requirements.

FACT: From 27 April 2020 the requirement of providing employment separation certificate, proof-of-rental arrangement and verification of relationship status will be temporarily removed.

Tax-free payment of $750.00

 Two support payments will be made of $750.00 to social security, veteran and other income support recipients and concession cardholders. These payments will be:

• 31st March 2020
• 13th July 2020

FACT: If you qualify for the $550.00 coronavirus supplement you will not receive the tax-free payment of $750.00

Early access to super 

If you meet one or more of the following requirements, you’ll qualify to access $10,000 from your super this financial year (2020), followed by an additional $10,000 next financial year (2021). This is to assist those in financial distress. To be eligible, you must:

• Be unemployed
• Be eligible to receive jobseeker payment, youth allowance for jobseekers, partnered payment, special benefit or farm household benefit
• Have been made redundant on or after 1 January 2020
• Have had your working hours reduced by 20% on or after 1 January 2020
• Have had your business suspended or turnover reduced by 20% if you’re a sole trader.  

FACT: These payments will be tax free.

Reduction in the minimum drawdown for superannuation pensions

The minimum drawdown for account-based pensions and similar products has been reduced by 50% for 2020 and 2021.

TIP: If you are in this space contact your advisor for what this means for you.

Each of you have unique situations and the current circumstances and environment can make it even harder to figure out where you sit. You can find some information here at Services Australia. Or contact us for a virtual discussion to help figure out what you’re entitled to.

Household budgeting 

Now is a fantastic time to come to terms with your household budget, especially with many of us experiencing reduced hours and a loss of work. The positive is that you can’t really go out anymore, travel is suspended and social actives are no longer.  This helps to save on the general household budget. But “where else can I save?” we hear you asking us.  

So while you’re staying home, here’s a good list to get you started on your budget:

1. If you don’t already have a budget template contact us to get one
2. Determine what income you have coming in (wages, rent etc)
3. What are your fixed expenses? (rent, mortgage, rates etc)
4. What are your fixed variables? (gas, electricity, insurance etc)
5. What are your everyday expenses? (groceries, gifts, stationery etc)
6. Once you identify what your expenses look at what variables can change (gym membership, sports clubs, shopping)
7. Next step is to create some goals.
8. Apply your goals and see where you can change variable expenses and areas where you can increase your income, this includes the application of any payments we discussed above.

There are small changes you can make to create your financial security over the coming months and we’re here to help you, don’t be shy.

For me and my family, I’m taking it one day at a time. I’m grateful that:

• We’re spending more time with our kids and creating great memories of drawing together, playing shop, dolls, Lego  board games
• I now appreciate how we used to live
• We’re together
• How lucky we are to have fresh food and produce available to us
• Sitting around the family dinner table talking about our day

Or maybe I’m just grateful that:

• Australia produces toilet paper locally

Liz, Julian & the Bluebird team