Along with help for people who have lost their jobs, the government is also paying cash to the self-employed whose incomes have dropped because of the coronavirus crisis. Sole traders and other self-employed people are also entitled to the $1500 a fortnight payment if they have suffered a 30% decline in their income. The payment is also available to trusts, partnerships and companies operated by directors. Payments start from the fortnight beginning 30 March (with the first payment to be made in early May) and run until September 27.
The JobKeeper payment is open to businesses whose turnovers have dropped by 30% or more. There are three different ways you can calculate the fall for the ATO, which is running the scheme:
Importantly, only one owner from each business entity is entitled to the payment. For example, with a company operated by two directors, only one would be entitled to the payment. However, Debono notes the other business owner might be entitled to the government’s JobSeeker payment if their income has dropped sharply or they have lost their employment. (Hyperlink to the earlier article.) Recipients should also know that they will have to pay tax on the JobKeeper payment, just like any other income. Applications are open from 20 April and can be made HERE.
UNO expert mortgage broker Amanda Denham suggests that talking to your existing lender and negotiating a cheaper rate on your home loan might make all the difference in helping you stay on top of your finances. At UNO we offer this service free of charge, so reach out to one of our brokers today if you would like help from us as we can contact your bank on your behalf. Many lenders are currently offering generous cashbacks and in combination with a lower interest rate, this might just be enough to help ensure you don’t fall behind on your home loan costs for the next few months. If your home loan comparison rate doesn’t start with a 2, you may be able to get a better deal by shopping around. Check out our loanScore tool. It’s a quick and easy way to see if there is a better home loan rate available and if you could be saving money. Book in a quick call with our customer care teamBook a call in with UNO