Your job or circumstances have changed

If you have lost your job, been stood down, or had your income significantly reduced you are likely to be experiencing some level of shock and concern.  There are however a number of options to consider that may help you manage your finances.

(Being stood down is a temporary measure that means you remain employed but are unpaid for the period of time that you do not perform your job, though you continue to accrue annual leave during this period).

Mortgage relief

Lenders are offering a range of hardship variations including deferring mortgage repayments for 6 months.

Seek JobSeeker support

If you have lost your job, been stood down or your income has fallen below a certain level, you may be eligible for support from the Government via the JobSeeker support package.  Alternatively, if you were a full time, part time or long-term casual (over 12 months) employee, contact your employer to check whether they have registered, or intend to register, for the JobKeeper payment. If they are registered or intending to register, then they will be able to keep you employed and continue paying you a wage of at least $1,500 per fortnight.

Option to access your super

Once the appropriate legislation is in place you may have the option of accessing up to $20,000 of your super.  We urge you to seek financial advice if you are considering this option.

Rent and utility relief

The States and Territories have agreed to a 6- month moratorium on the eviction of commercial and residential tenants if they can’t pay their rent due to the ongoing crisis. Please refer to our Rent Hardship for Tenants & Landlords section for more information.  Many utility providers have also launched relief measures. Please speak to your specific provider about temporary relief.

Income protection insurance

As a general rule, an Income Protection policy covers you if you are “unable to work due to illness or injury” not because work has stopped due to COVID-19 or other reasons. There are a limited number of policies in the market that may have a redundancy clause which may pay you an amount of cover for up to 3 months.

Some polices have “Involuntary Unemployment” clauses that will either stop the insurance premiums for 3 – 6 months (so you can retain the cover without the cost) or some help you cover mortgage payments in certain circumstances.

You can check the Product Disclosure Statement for your policy and search for “Unemployment” or “Redundancy” to find out more.

There may be an option to “freeze” your insurance premiums.  Please refer to our section on Managing expenses as this is one of the options discussed.

Reduce costs

Reducing costs is a step that many Australians are taking as a common-sense measure but it’s also important to be aware of the options and potential impacts of the choices you make.

Continue to seek new employment options

If you have been stood down or had your hours reduced you can seek additional work through another employer. As long as your additional employment is not on a full-time permanent basis, you will not be required to resign from your original job. Any applicable Government support you receive will be adjusted based on the income you receive.

The Government has also launched a new website to help you find advertised vacancies in areas where there is currently increased demand.

View the Jobs Hub


Contact us today

CALL (08) 7079 1077

This information and any advice in this website is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, property, tax, credit or personal financial advice and should not be relied on as such. You should obtain advice relevant to your circumstances before making decisions in relation to any matters discussed. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. The case studies are hypothetical, for illustration purposes only and are not based on actual returns. You should seek specialist advice from a tax professional to confirm the impact of any advice on your overall personal tax position. Taxation information is based on our interpretation of the relevant laws as applied at the date of this communication. Nothing in this website represents an offer or solicitation in relation to property, securities, investments, financial services or credit in any jurisdiction. While every care has been taken in the preparation of this information, it may not remain current after the date of publication and Cotter Financial Group and its related bodies corporate make no representation as to its accuracy or completeness.