JobKeeper 2.0 & how to plan for the next phase
The Australian Federal Government made an announcement Tuesday that the JobKeeper payment scheme will be extended beyond the original date of 27 September 2020.
It is understood that the intention behind the changes to the scheme is to ensure the integrity of the program so that businesses most affected by COVID-19 are being supported.
To further focus the funding provided by the federal government a minimum wage condition is being introduced which will see employees receive JobKeeper payments in line with the basis on which they were employed.
While this announcement takes some pressure off of businesses who were staring down an empty barrel post-September, when the original JobKeeper Payment Scheme is scheduled to expire, it doesn’t solve the long term concerns for business owners.
It is important that we take a moment to take stock of what the next six months look like for both our business and personal finances. Sitting in the middle of the calendar year, we are 5 months from Christmas and a Christmas that might look very different from what many are used to.
My advice to everyone right now is to quantify the amount of money you expect to need for the next six months -- that includes Christmas spending.
Taking a moment to think about what you will need often shines a light on what we don’t really need and where you might be able to close a leak that you weren’t aware of before. As daunting as it might sound, when we review each line of our spending and see where most our money is spent, there are often really simple ways to reduce the cost of the nice to haves without giving them up.
A few of my favourite simple money tips
Delay your shopping decisions -- it is amazing how much we buy and consume on impulse. If the desire is still there in a day or two it was a real desire.
Rediscover cooking -- we pay the price for convenience. Not only is home-cooked more nutritious for the body but it is also good for the soul. (Maybe even get your friends to kick $10 into the kitty and share a meal together).
Consolidate debt -- if you have credit card debts or other unsecured loans, consider building it into your home loan if you have one or do some research around other unsecured options to bring those nasty credit card interest rates down.
Program everything -- use and instal timers and kill switches to automatically turn off commonly left on appliances like heaters and fans. You’ll be amazed at what money and what fossil fuel consuming energy you will save!
Review your Insurance/Home Loan/Bank Account Fees -- basically, anything that has a recurring charge look at how you can bring it down or reduce it to $0.
Buy IN season or OUT of season -- when it comes to groceries it makes sense and is much cheaper to buy in-season produce. While large appliances it makes more sense to buy off-season when stores are struggling to move their stock -- if you need a fan or air conditioner look into it now!
There is not one budgeting/savings model that works for everyone -- work through your financial life and clear the clutter and work on making better decisions. It will take the pressure off and reduce those cortisol levels in the long run.
We have put together a fact sheet on on what JobKeeper 2.0 will look like.