JobKeeper payments stop soon, so how do you handle the hurt?
Australian jobs are in jeopardy once wage subsidies end next week, and while the size of the impact is unclear, it pays to plan.
Opinion
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JobKeeper – a financial saviour of more than 3.5 million Australians during the pandemic – will disappear in exactly one week, and there will be pain.
When the government switches off its wage subsidy scheme on March 28, economists estimate more than 100,000 Aussies will lose their jobs because their businesses and bosses have been artificially propped up by stimulus.
Offsetting that is a strengthening Aussie economy that’s creating new jobs despite COVID’s impact on international tourism and students, China’s attacks on our exporters and a world still ravaged by the virus.
About one million people have been receiving JobKeeper in recent weeks, and many will get caught in the crossfire as businesses decide to close or slash their staff further.
If this affects you, a colleague, friend or family member, here’s what to consider.
SPEAK WITH YOUR BOSS
It may be a tough conversation, but it’s worth asking your employer how the business is travelling, and if JobKeeper-related staff cuts are on the cards.
Not every boss will be honest, and some won’t know exactly what the impact will be, but it can’t hurt to ask.
GIVE YOURSELF A FINANCIAL CHECK-UP
If work looks shaky, take a good look at your personal finances to spot potential savings.
Go through bank or credit card statements online and make a list of your essential costs – such as food, housing and health – in one column, and every non-essential expense in the other column.
That way, if you have to make drastic financial changes, you’ll know where to start.
NO PLACE FOR OSTRICHES
Sticking your head in the sand and hoping something positive will pop up is not a sane strategy.
MyBudget director Tammy Barton says having a plan in advance is vital.
“Missing a payment and waiting to see what happens when your bank or landlord calls rarely results in a positive outcome,” she says.
“As well as bringing on stress, it weakens your negotiating power.”
TALK ISN’T CHEAP
Communication with your bank and other lenders can stop a financial squeeze from becoming a debt spiral.
Beyond Bank’s general manager customer experience, Nick May, says speaking with your bank early may open your eyes to financial wellbeing programs.
“If the upcoming changes will affect your ability to pay your mortgage or you have been on a loan payment deferral agreement that is about to expire, get on the front foot and start looking at your choices – you might be surprised at how flexible banks are and how easy it is to get a better deal,” he says.
DON’T GIVE UP
Life is full of challenges, and millions of people around the world have confronted the biggest challenges of their lives in the past year.
If you face a fresh financial squeeze, don’t be afraid to seek help. From financial counsellors to Centrelink benefits to free training programs and other assistance, options are available.
And if your next path involves a career change, try to see it as just another challenge created by COVID.
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