2020 Budget provides $250 cash payments for aged, family and disability welfare recipients
Criteria confusion for self-funded retirees – Seniors urged to check their eligibility
Cash payments totalling $500 are about to line the pockets of around 5.1 million pensioners and other eligible recipients.
Two $250 payments — to be paid in December this year and March next year. These two cash payments were announced as part of the Federal Budget handed down by Treasurer Josh Frydenberg earlier this month.
These payments will not be taxed, and the two amounts will not count as income support for the purposes of any income support payments.
The exact dates of cash payment are yet to be confirmed by the Government.
Ian Yates, the chief executive of the Council on the Ageing (COTA), which represents older Australians, said the payments were “very welcome”.
“This is what we’ve called for and we’re pleased to see the Government delivering more money to pensioners, who both need it and will spend it into the economy,” he said.
Who’s eligible for the $250 payments?
It’s not just pensioners.
If you receive any of the following payments or if you hold any of the following healthcare cards, then you’re eligible:
- Age pension
- Disability Support Pension
- Carer Payment
- Family Tax Benefit, including the Double Orphan Pension (but not in receipt of a primary income support payment)
- Carer Allowance (but not in receipt of a primary income support payment)
- Pensioner Concession Card (PCC) holders (not in receipt of primary income support payment)
- Commonwealth Seniors Health Card holders
- eligible Veterans’ Affairs payment recipients and concession card holders
When will they be paid out?
The first payment of the two will start being paid out from November.
And the second part is due to follow in March 2021.
The exact dates of cash payment are yet to be confirmed by the Government.
Criteria confusion for self-funded retirees
National Seniors Australia is now urging self-funded retirees to check their eligibility too.
The country’s peak consumer group for older Australians says tens of thousands of self-funded retirees may be under the impression they don’t qualify for the CSHC – when they do.
Changes to deeming rates used as part of the CSHC income test has improved eligibility for the card, and therefore the budget stimulus payments.
To qualify for the CSHC, an individual must have reached the pension age, meet an income test, are not receiving any payments from Veterans Affairs and are an Australian resident living in Australia.
To meet the income test, individuals or couples must earn below the following thresholds:
- $55,808 for singles
- $89,290 for couples
- $111,616 for couples who are separated by illness, respite care or prison.
Australians have until November 27 to be eligible and receive the first $250 payment.
Source:
– 7News. COVID CASH: Tens of thousands of Australians urged to check eligibility for $500 handout. By Summer Wooley. 27 October 2020. Read more
– ABC News. What we know about the $250 cash payments for aged, family and disability welfare recipients in the 2020 Budget. 7 October 2020. Read more
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