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COVID-19 CRISIS What the banks are really offering!

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So earlier in the week the reserve bank cut rates and banks are now looking at deferring loan repayments, including mortgages, waiving of merchant fees, overdraft fees etc.

So where will this leave an individual?

Though all banks are facing the same challenges with the uncertainty of the Coronavirus, we as a nation are still in a strong and stable financial system and though the economy is heading towards massive unemployment and a recession, the banks are at least providing assistance where it is needed in these trouble times.

At time of writing this blog post, changes are still being updated by the Prime Minister and Cabinet.

Check out this link where the banks are offering consumers support during this time. https://www.nab.com.au/personal/customer-support/covid19-help/business-support

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au

COVID-19 CRISIS Do you really want to withdraw your Superannuation early, the Government has allowed early access?

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https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/?anchor=Compassionategrounds#Compassionategrounds

The Government has allowed early release of Superannuation, allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

The best thing is, that individuals will not need to pay tax on amounts released and it won’t affect payments such as Centrelink or Veteran Affairs payments. The dates the Government has imposed for the first amount you can apply from mid-April up to before 1st July 2020, the further $10,000 you can access from 1st July 2020 until 24th September 2020, after that it will not be available.

So, there are a couple of requirements though, they are:

  • If you are unemployed
  • You are eligible to receive a job seeker payment, youth allowance, parenting payment (including those on single and partnered payments) special benefit or farm household allowance.
  • Or you have been made redundant
  • Your working hours have been reduced more than 20% or more
  • If you are a sole trader and your business has either suspended or there was a reduction in your turnover of 20% or more

But is it wise to actually access your superannuation? It really comes down to case by case, but remember, once it’s taken, that $20,000 will take some time to build again into your Superannuation fund, so it’s food for thought.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au