Forman Financial Services

Budget Announcements 2019-20 Social Security

Energy Assistance Payment

Effective by 30 June 2019

Social security pension recipients will receive a one-off Energy Assistance Payment by the end of the current financial year.

The payment will be $75 for singles and $125 for couples combined and will be exempt from income tax.

People who are Australian residents and eligible for the following payments as at 2 April 2019 will automatically receive the payment – Age Pension, Disability Support Pension, Carer Payment and Parenting Payment Single. Also recipients of the following payments from the Department of Veterans Affairs will be eligible – Service Pension, Income Support Supplement, disability payments, War Widow(er)s Pension, and permanent impairment payments under the Military Rehabilitation and Compensation Act 2004 (including dependent partners) and the Safety, Rehabilitation and Compensation Act 1988.

Reporting Employment Income – Single Touch Payroll

Effective by 1 July 2020

The reporting of employment income for social security purposes will be automated through Single Touch Payroll (STP).

Under the current system, income support recipients who are employed are required to calculate and report their earnings on a fortnightly basis.

Under the proposed changes, employment income will be reported through an expansion of STP data-sharing arrangements to include the Department of Human Services, for recipients with employers utilising STP.

The Government states this measure will assist income support recipients by reducing the likelihood of receiving an overpayment of income support payments.

The Government will achieve savings of $2.1 billion over five years through more accurate reporting of employment income.

For more information on this subject feel free to get in touch with us click here
To receive free updates on relevant information click here
To read more about specialised service offers for Financial Planning please click here