[vc_row][vc_column][vc_custom_heading text=”Financial planners have an important role when you lose your job” font_container=”tag:h2|font_size:1.2em|text_align:left|color:%23262626″ google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal”][vc_column_text]Redundancy can be a difficult time, and some Australians experience it at some point in their career.
After being made redundant, the logical next step for most people is to find work again, and this is one area where a Financial planner can provide support.
If you are made redundant we can provide a referral to an employment services provider. This is an important first step to assist you in finding work. In addition, there is a range of income support payments available while you are looking for work or undergoing activities, such as studying or training, to increase your chances of finding work.
These support payments include;
- Newstart Allowance
- Parenting Payment
- Sickness Allowance
- Youth Allowance
- Widow Allowance
Your application will be assessed against standard eligibility criteria. But any payouts they receive from their former employer can have implications as to the timing of when you can begin receiving income support payment.
The income maintenance period is a waiting period applied to you if you receive a redundancy a redundancy payout. This is a legislative requirement and it varies in length according to the size of the payout you receive.
For example, if you or your partner were made redundant and received a ten week payout, the department is required to assess your income maintenance period to be ten weeks.
This means he or she would have to wait ten weeks before receiving an income support payment from the department, provided the usual eligibility criteria for the payment is met.
If you spend a payout on expenses such as a holiday, a lump-sum mortgage payment, or lump-sum rent payment, it’s important to be aware this does not reduce the income maintenance period.
This is why it is important that you spend your payout in a way that won’t render you unable to cover essential costs during the waiting period.
However, there are exceptions. For example, if you were to spend the payout on expenses that are considered unavoidable or reasonable such as essential repairs to a car or home, or essential medical expenses, the department may be able to reduce the waiting period.
In some cases, you may receive a small payout and may be eligible for a part-payment during the income maintenance period.
It is highly recommended you make contact with the department to have income maintenance period assessed, even before receiving the payout, to effectively plan ahead.
The department can also provide assistance by linking you with employment service providers, social workers and financial information service officers.
For more information, visit humanservices.gov.au/jobseekers and click on the “retrenched or redundant” tab.
[via Financial Planning magazine March 2016][/vc_column_text][/vc_column][/vc_row]