1. Coronavirus Supplement
The Coronavirus Supplement doubles Newstart payments for job seekers, changing the payout to $1100 a fortnight from $550. Meanwhile at the end of the fiscal year, out-of-work contractors will need to cough up ten of thousands of dollars in tax to pay for this program. This stimulus package should focus more on helping those impacted by the coronavirus slowdown and less on helping people who already have a source of taxpayer funded income. Cost of living hasn’t changed. Even with the alleged 'waiving of regulatory hoops', Services Australia splashed much of the $14.1 billion on hiring 5000 government pencil pushers. Government needs a priority check.
2. Payments to support households
While workers are struggling not to drown during the economic downturn, this policy is gifting $750 to people who don’t work: pensioners, social security recipients, veterans, and concession card holders. Like the Coronavirus Supplement, the people least impacted by lockdowns and closed businesses receive taxpayer funds, while the people who are no longer receiving their paychecks must fend for themselves. Pensioners are by definition over 65 and retired, meaning staying home for a few weeks doesn't impact their lives as much as those who need to go to work to get paid.
3. Early Release of Superannuation
Finally something to celebrate! Contractors and sole traders who have lost at least 20 per cent of their income due to Coronavirus are now eligible to pull up to $10,000 from their superannuation, tax free. This will free up liquidity for the people that need that money most right now. The only fault with this policy is that it should have gone farther. Politicians should make super payments voluntary for contractors, should allow all Australians to pull money from their super at anytime, and remove taxes on super.