Economic Stimulus Payment

As from Monday 8th of December 2008, eligible Australians will receive their share of the Economic Stimulus package.

On this page we are not commenting on the pros and cons, or suggesting what to do with the money if or when you receive it.
It is an explanation of the process.
Most of the information has been sourced from the CentreLink web site and has been copied here because the CentreLink web site is currently very slow or unavailable due to overwhelming demand for explanations.

Package in a nutshell:

  1. $4.8b down payment to pensioners.
  2. $3.9b in support payments for families.
  3. $1.5b for first home buyers.
  4. $187m to create new training positions
  5. - Budget to remain in surplus.

Frequently asked Questions

Seniors, pensioners, people with a disability, veterans and carers

Eligibility:

You may receive the one-off payment if, on 14 October 2008, you were eligible to receive one of the payments listed below:

  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Wife and Widow B Pension
  • Partner, Widow and Bereavement Allowance
  • Veterans' Affairs Service Pensioners
  • Veterans Income Support Supplement.

You may also receive the one-off payment if, on 14 October 2008, you:

  • held a Commonwealth Seniors Health Card
  • held a Veterans’ Gold Card and were also eligible for Seniors Concession Allowance
  • were of age pension age and eligible to receive Parenting Payment, Special Benefit, Austudy or ABSTUDY Living Allowance.

For DVA pensioners this means those eligible for age/invalidity or partner service pension, or income support supplement, will receive a payment of $1,400 if they are single or $1,050 to each member of a pensioner couple, regardless of their age. This includes those Social Security age pensioners paid by DVA.

For Carers: If you received Carer Allowance for 14 October 2008, you will receive the one-off payment for each eligible person in your care.

Which Self Funded retirees are eligible for the payment?

Any self-funded retiree over pension age who is qualified for Seniors Concession Allowance on 14 October 2008.
Those who hold a Commonwealth Seniors Health Card or are Gold Card holders eligible for Seniors Concession Allowance will receive a payment of $1,400 if they are single or $1,050 for each member of a couple.

Do I have to anything to claim the payment?

No. It will be paid into the same account as your Utilities Allowance or Seniors Concession Allowance.

How much is the payment?

If you are eligible, you will receive a one-off non-taxable amount of:

  • $1,400 if you are single, or
  • $2,100 per couple ($1,050 for each eligible member of a couple).
  • Carers will receive $1,000 for each eligible person in their care.

When will it be paid?

The one-off non-taxable payments will be paid in the fortnight beginning 8 December 2008, with most payments received by 19 December 2008.
(For DVA pensioners that means 18 December 2008.)

Exception: For customers who live overseas on a long term basis and receive payments 4 weekly, the one-off payment will be paid on 30 December 2008 with your regular payment.

How will it be paid?

If you are eligible, your one-off payment will be made automatically to your nominated bank account. You do not need to apply for the payment.
Commonwealth Senior Health Card holders who do not currently receive Seniors Concession Allowance will need to contact Centrelink to provide their bank details.

Is it possible to get both the payment for families and the payments for pensioners, carers, seniors and veterans?

Yes, if you are eligible for more than one payment.

Is the payment considered income?

No. The payment is not taxable or considered income for Social Security purposes.

How will this payment impact on my tax?

The payment is not taxable and will not be classed as income under the pension means test.
However, if it is invested it will be subject to deeming, like any other financial investment.

Will my payment be income managed?

If your regular payments are income managed, all of your lump sum payment will be income managed. For more information view the Economic Security Strategy Payment and Income Management fact sheet.

Commonwealth Senior Health Card holders, not currently receiving Seniors Concession Allowance.

If you are a Commonwealth Senior Health Card holders and do not currently receive a Seniors Concession Allowance, you will need to contact Centrelink to provide your bank details.

I am living overseas. Do I still receive the payment?

For Eligible pensioners who live overseas on a long term basis and receive payments 4 weekly, the one-off payment will be paid on 30 December 2008 with your regular payment

I haven't received my payment. What can I do?

If you are entitled to a lump sum payment it will be paid to you between Monday 8 and Friday 19 December 2008.
(For eligible persons who live overseas on a long term basis and receive payments 4 weekly, the one-off payment will be paid on 30 December 2008 with your regular payment.)
Payments are likely to be made on your normal payment day.

If you believe you are entitled to a lump sum payment and have not received it by Monday, 22 December 2008 please contact Centrelink.

Families

Who is eligible for the payment?

To receive the one-off payment, you must have been entitled to Family Tax Benefit Part A on 14 October 2008.
The payment will also be made for each dependent child who on 14 October 2008 were entitled to receive Youth Allowance, ABSTUDY, a Veterans' Children Education Scheme payment or a Military Rehabilitation and Compensation Act payment.

How much is the payment?

The payment is $1,000 for each eligible child.

When will it be paid?

If you are receiving fortnightly payments, the payments will be paid in the fortnight beginning 8 December 2008, with most payments received by 19 December 2008 (generally it will be paid with your usual FTBA payday in this period).

If you receive your family payments as a lump sum at the end of the financial year, the one-off payment will be made at the same time as your Family Tax Benefit Part A payment after the end of the 2008-09 financial year when you lodge your claim with the Family Assistance Office.

How will it be paid?

Centrelink will make the payment directly into the bank account of the person receiving the fortnightly payment of Family Tax Benefit Part A, Youth Allowance, ABSTUDY or Veterans' Children Education Scheme payment. If you are eligible, your one-off payment will be made automatically to your nominated bank account. You do not need to apply for the payment.

Is it possible to get both the payment for families and the payments for pensioners, carers, seniors and veterans?

Yes, if you are eligible for more than one payment.

How will the payment work for separated parents?

The normal rules that apply to the sharing of Family Tax Benefit will apply to this payment. If you share care of a child, and you have at least 35% of care, the one-off payment will be divided in the same proportions as your Family Tax Benefit.

Will parents with regular care of a child who receive Rent Assistance through Family Tax Benefit receive the payment? (for example, parents who have less than 35% care)

No. These parents do not receive Family Tax Benefit Part A. In these cases, the payment is paid to the parent who is the primary carer.
However, if you share the care of your child or children and have at least 35 per cent care you may be entitled to a portion of the payment. The payment will be shared according to the Family Tax Benefit percentage of each child.

Can I get the payment through the Australian Taxation Office?

No. Centrelink will make the payments.

If a recipient of Youth Allowance is paid directly by Centrelink (rather than the payment being made to the parents), will the young person receive the payment?

Yes. The payment will be made in the same way as the Youth Allowance payment is usually made.
If Youth Allowance is paid directly to your child, the additional payment will also be paid directly to your child.

Is the payment considered income?

No. The payment is not taxable income or considered income for Social Security or Family Assistance purposes.

What if I don't get fortnightly payments?

If you claim your Family Tax Benefit Part A as a lump sum at the end of the financial year, the payment will be made at the same time as your Family Tax Benefit Part A payment.
Please note: If you were eligible for Family Tax Benefit Part A on 14 October 2008 and you would like the payment earlier you can change to fortnightly payments. You can change the way you get your payments by:
  • using the Family Assistance Office online services.
  • visiting your nearest Family Assistance Office, located in Medicare Australia offices, Centrelink Customer Service Centres, and Australian Taxation Office shop fronts. To find your nearest office, use the office locator ; or
  • calling the Family Assistance Office on 13 61 50.

Will my payment be income managed?

If your regular payments are income managed, all of your lump sum payment will be income managed. For more information view the Economic Security Strategy Payment and Income Management fact sheet.

I haven't received my payment. What can I do?

If you are entitled to a lump sum payment it will be paid to you between Monday 8 and Friday 19 December 2008.
Payments are likely to be made on your normal payment day.

If you believe you are entitled to a lump sum payment and have not received it by Monday, 22 December 2008 please contact Centrelink.

Who is not eligible for the Economic Security Strategy Payment (FTB Part A)?

If you get Family Tax Benefit Part B only or you are an approved care organisation, you are not eligible for the Economic Security Strategy Payment.

Disclaimer:

Although great care has been taken to provide accurate and clear information, we are not responsible for any mistakes.

If there is anything unclear, or if there are any mistakes, please let us know, so we can make the necessary changes.

Unclear, errors, comments