Compassionate response can ease the stress Regain a sense of control

The wide-ranging impact of Covid-19 on the economy can be highlighted in many ways. But two stories on the Money website in March drew my attention to some major financial pain points among individuals.

A great summary of the federal government’s JobKeeper payment by Susan Hely had received more than 50 comments (as at April 4) – and all of them were questions about whether people qualified for the payment.

We weren’t in a position to answer who qualified as the rulebook hadn’t been fully written. But the questions reminded me how compassionate we need to be as a nation.

Consider the woman who works casually and was paid cash-in-hand for five years until August 2019, after which she became officially on the books.

She will not be eligible because the employer is not recognising her as an employee for the 12 months before March 1, 2020.

Or what about the man who started a business late last year and can’t yet confirm whether he’s lost more than 30% of revenue in a particular month or three-month period year on year. Luckily, in this case the tax commissioner does have discretion to award the JobKeeper payment to this man’s employees.

Reading through the government’s fact sheet on JobKeeper, it appears the tax commissioner will hold the lion’s share of responsibility for who receives the payment. At the very least we’d ask the commissioner to be tolerant in these trying times.

The second story, also written by Susan, was about what renters could do if they were experiencing financial hardship. It garnered more than 30 comments, mostly from landlords suggesting that they had been overlooked. It was written before the federal government’s sixmonth moratorium on evictions and any announcements regarding help for landlords.

As a follow-up story rightly pointed out, both renters and landlords know the score. Some renters are doing it tough with job losses and other losses of income. Landlords are dually affected having reduced or no rental income while still needing to cover mortgage repayments, tax commitments and repairs and maintenance.

Again, it’s here we all need to be compassionate, tolerant and understanding as we adapt to a new world order.

Darren Snyder

The problem with Covid-19 is that it is affecting every aspect of our lives and, as well posing a serious health threat, there is also a real wealth threat. In the face of all this, people may start to lose financial confidence. However, along with providing strategic advice, financial advisers can help you regain a sense of control.

Traditionally, advisers help you define your goals and put in place a long-term financial plan to achieve them. This plan does not have to be abandoned in the face of Covid-19, but it may have to be put to one side for a time in order to focus on what needs to be done here and now.

For example, we can help you to make a decision about whether or not to access some of your superannuation early; whether to ask your bank for a mortgage holiday or go on making home loan repayments; or if you are drawing a retirement income from your super fund, whether to reduce the amount you are taking out, especially in light of a volatile sharemarket.

Marc Bineham, national president of the Association of Financial Advisers

Using her comedic wit, Jean Kittson takes the edge off the difficult issues families face in dealing with ageing parents. She covers living arrangements and whether your parents are suited to a retirement home, nursing home or granny flat, as well as government benefits, medical emergencies, tough discussions with siblings, living wills and other legalities.

Kittson shares her own family stories (including caring for her own 90-something parents), and those of friends. They are illustrated with cartoons from her husband, the cartoonist Patrick Cook.

Five readers can win a copy.

In 25 words or less tell us the best financial advice you’ve received from your parents. Enter online at moneymag.com.au/win or send entries to Money, Level 7, 55 Clarence Street, Sydney, 2000. Entries open on April 27, 2020 and close on June 1, 2020.