The Federal Government & COVID-19: Payments to support households

The Federal Government & COVID-19

Payments to support households

 

These payments will provide assistance to lower income Australians, including pensioners, other social security and veteran income support recipients and eligible concession card holders. 

SUPPORT PAYMENTS 

Summary 

The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. These payments will support households to manage the economic impact of the Coronavirus. 

• The first payment (announced on 12 March 2020) will be available to people who are eligible payment recipients and concession card holders at any time from 12 March 2020 to 13 April 2020 inclusive. 

• The second payment will be available to people who are eligible payment recipients and concession card holders on 10 July 2020. 

A person can be eligible to receive both a first and second support payment. However, they can only receive one $750 payment in each round of payments, even if they qualify in each round of the payments in multiple ways. 

The payment will be exempt from taxation and will not count as income for the purposes of Social Security, Farm Household Allowance and Veteran payments. 

Eligibility for the first payment 

To be eligible for the first payment, you must be residing in Australia and be receiving one of the following payments, or hold one of the following concession cards, at any time from 12 March 2020 to 13 April 2020, inclusive:

• Age Pension 

• Disability Support Pension 

• Carer Payment 

• Parenting Payment 

• Wife Pension 

• Widow B Pension 

• ABSTUDY (Living Allowance) 

• Austudy 

• Bereavement Allowance 

• Newstart Allowance 

• JobSeeker Payment 

• Youth Allowance 

• Partner Allowance 

• Sickness Allowance 

• Special Benefit 

• Widow Allowance 

• Family Tax Benefit, including Double Orphan Pension 

• Carer Allowance 

• Pensioner Concession Card (PCC) holders 

• Commonwealth Seniors Health Card holders 

• Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump sum payments; War Widow(er) Pension; and Veteran Payment. 

• DVA PCC holders; DVA Education Scheme recipients; Disability Pensioners at the temporary special rate; DVA Income support pensioners at $0 rate. 

• Veteran Gold Card holders 

• Farm Household Allowance 

Where someone has lodged a claim for one of the eligible payments or concession cards at any time from 12 March to 13 April 2020 inclusive, and the claim is subsequently granted, they will also receive the payment. 

The first payment will be made to approximately 6.6 million social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. 

Eligibility for the second payment 

To be eligible for the second payment, you must be residing in Australia and be receiving one of the payments or holding one of the concession cards that were eligible for the first payment, except for those who are receiving an income support payment that is eligible to receive the Coronavirus supplement. 

Income support recipients that are eligible to receive the Coronavirus supplement are: 

• JobSeeker Payment (and payments progressively transitioning into JobSeeker Payment) 

• Youth Allowance Jobseeker 

• Parenting Payment (Partnered and Single) 

• Farm Household Allowance 

• Special Benefit 

The second payment is expected to be made to around 5 million social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. 

TIMING

  Timing Budget Impact
First Payment Paid automatically from 31 March 2020 $4.8 billion
Second Payment Paid automatically from 13 July 2020  $4.0 billion

 

Payments will be made by Services Australia or the Department of Veterans’ Affairs. 

 

If you are a holder of a Veteran Gold Card, we will contact you to confirm your account details so the payment can be made as soon as possible.

 

Example — First and second payment 

Kate and Angus are a couple and are both Age Pension recipients as at 12 March 2020. Kate and Angus will each receive $750, so their household will receive $1,500 in total. Payments to Kate and Angus will be made automatically from 31 March 2020. 

As Kate and Angus remain both a couple and Age Pension recipients on 10 July 2020, they will each be eligible for a further $750 as part of the second payment, so their household will receive $1,500 in total for the second payment. 

This will bring the total payment to their household to $3,000, from the first and second payments. 

Example — Interaction between Coronavirus supplement and second payment 

Leanne is a single parent JobSeeker Payment recipient on 10 July 2020, receiving a single, with dependent child, rate of $612 per fortnight, a further $9.50 per fortnight for the Energy Supplement and an additional $550 per fortnight Coronavirus supplement. 

This brings Leanne’s fortnightly income support payment to $1,171.50. 

Leanne was in receipt of the Jobseeker Payment on 30 March, so she was eligible for the first $750 payment. 

As Leanne already receives the $550 per fortnight Coronavirus supplement, she will not be eligible for the second $750 payment. 

 

BENEFITS ELIGIBLE FOR ECONOMIC SUPPORT PAYMENTS

Payment/Card

2020 First

Economic Support Payment

2020 Second

Economic Support Payment

Eligible for

Coronavirus

Supplement

Age Pension Y Y  
Disability Support Pension Y Y  
Carer Payment Y Y  
Parenting Payment Y   Y
Wife Pension Y Y  
Widow B Pension Y Y  
ABSTUDY (Living Allowance) Y Y  
Austudy Y Y  
Bereavement Allowance Y Y  

Newstart Allowance / JobSeeker Payment

Y   Y
Youth Allowance Y

Y  (Student only)

Y (Jobseeker)
Partner Allowance / JobSeeker Payment Y   Y
Sickness Allowance / JobSeeker Payment Y   Y
Special Benefit Y   Y
Widow Allowance / JobSeeker Payment Y   Y
Family Tax Benefit Y (per recipient) Y (per recipient)  
Double Orphan Pension Y Y  
Carer Allowance Y (per recipient) Y (per recipient)  
Pensioner Concession Card (PCC) holders Y Y  
Commonwealth Senions Health Card holders Y Y  
Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump sum payments; War Widow(er) Pension; and Veteran Payment Y Y  
CVA PCC holders; CVA Education Scheme recipients; Disability Pensioners at the temporary special rate; DVA Income support persioners at $0 rate. Y Y  
Veteran Gold Card holders Y Y  
Farm Household Allowance Y   Y

 

FOR MORE INFORMATION 

For more information on the Australian Government’s Economic Response to the Coronavirus visit treasury.gov.au/coronavirus.

 

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