How to get your finances back in shape after a bushfire
Thousands of Australian are facing a massive financial blow after the summer of bushfires. Whether you’re repairing property, paying a mortgage, replacing lost income or rebuilding a business, here are David Koch’s tips to getting back on your feet.
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It has been a devastating summer so far. As bushfires continue to ravage parts of Australia, apart from the raw physical and emotional impact, individuals, families and businesses are also facing a huge financial blow.
Whether you need help to repair damaged property, pay a mortgage, replace lost income or rebuild a business, here are some crucial steps you can take to get try and get back on your financial feet:
Contact your insurer
The first thing you need to do after any natural calamity is call your insurer. Most insurance companies have teams mobilised for disaster scenarios where someone will come out and survey the situation right away. If the clean-up can’t wait for the insurance team’s arrival, be sure to keep all receipts and records of costs incurred and damaged materials removed.
Good record keeping is essential for quick insurance claims. And take as many photos as possible to verify claims.
Remember that while most home insurance policies cover bushfires, check how much your home and belongings are actually insured for. Read the policy document carefully so you know exactly what you can claim for and what you can’t.
Look for financial help
This is not a time to be stoic or too proud to ask for help. All of Australia wants to help which has been shown in the enormous generosity and support for a range bushfire help.
The average Australian wants that money to go to you … apply for it. A number of organisations including the Australian Red Cross and Salvation Army are offering grants to people who have lost their home in a bushfire. Red Cross is offering a grant of $10,000 per household if your home has been destroyed in a bushfire.
Talk to your bank
Repaying loans at a time like this will be difficult and that’s why the Australian Banking Association (ABA) announced an assistance package for those affected by the bushfires. If you’re a bank customer facing financial hardship because of the recent bushfires, you can have your loan repayments deferred, fees and charges waived and existing loans restructured at a number of ABA member banks, including the big four.
All financial institutions are trying to help their customers cope in these hard times so it’s a good idea to get in touch with your bank to discuss your specific situation.
Get government support for loss of income
If you’ve lost your income because of the bushfires and don’t receive any other income support or pension, you can apply for the Disaster Recovery Allowance that provides income support payments for up to 13 weeks depending on your circumstances. To apply, you’ll need to visit the Department of Human Services website and check if your local government area is on the list for assistance.
You can also look for more support available in your region, on the National Bushfire Recovery Agency website.
The Federal Government is also offering help and grant for small businesses to rebuild after the fires … Department of Human Services has the details
Don’t stress about Tax
The Australian Taxation Office has identified postcodes impacted by the bushfires, so people don’t need to apply for a deferral, a faster refund, or remission of interest or penalties. This will be done by the ATO automatically.
Approximately three and a half million businesses, individuals, and self-managed superannuation funds in impacted local government areas will now have until 28 May 2020 to lodge and pay business activity statements and income tax returns. If that will still be a struggle just talk the ATO and they’ll work out a plan just for you.
If your postcode isn’t on the ‘identified postcodes’ list, you can call 1800 806 218 for help.
Build a safety net for the future
It will be a tough period for so many people on so many different levels and despite all the goodwill, there will be setbacks. An important part of the healing process will be comfort from knowing you’ll be prepared if it ever happens again.
Make sure insurance cover is adequate, that an emergency fund is always on standby and important documents are organised and easily accessible.
Originally published as How to get your finances back in shape after a bushfire