When centrelink liquid assets waiting period is no longer waived, what can I do to avoid waiting period?
Except by sending money to ozbargain fellows
Update:
After reading the comments, here are some conclusions:
Wouldn't money in a redraw account still be counted as liquid?
Yes. I believe so. Basically when we can take the money easily, it is considered as liquid assets
https://guides.dss.gov.au/guide-social-security-law/1/1/l/50
Liquid assets include:
So i can transfer all money (make extra repayment) to my mortgage account? And then it becomes not liquid assets?
@hentabara: Yeah - money in redraw is actually now the banks money. They may or not let you take it out (as people discovered during COVID19) or even just apply to the mortgage.
eg https://www.abc.net.au/news/2020-05-04/westpac-will-not-take…
Seems to me that the only way to avoid the waiting period would be to have less than $5K of liquid assets. If you don't want to give your cash away, then you need to make it not readily available, so that it's not liquid.
What are the options here?
Mortgage redraw is looking good, based on black crush's definition find.
Otherwise, a term deposit?
if you are already getting centrelink payments, does the liquid assets test waiting period still apply?
Yes. (As far as I know). If you get the waiver when you applied, you will need to go through the test.
No you dont, I just read it
this means people already getting centrelink will not be re-assessed on liquid assets? Do i read that right?
@screensaver: This is the part I read:
3.1.2.20 Liquid assets test waiting period
Temporary exemption from the LAWP - Coronavirus (COVID-19)
As part of the response to the Coronavirus (COVID-19) outbreak, the liquid assets test waiting period does not apply from 25 March 2020 to 24 September 2020 for the following payments: JSP, YA and Austudy. A person already serving a waiting period at 25 March 2020 will no longer serve the waiting period and be backdated to the date of claim.
At the end of the exemption period, recipients do not have any remaining waiting period to serve.
Explanation: A LAWP does not resume for a person in receipt of JSP, YA, or Austudy at 24 September 2020.
Are you reading it the same way as I am?
what can I do to avoid waiting period?
Easy… start another pandemic!
what can I do to avoid waiting period?
Spend your money to look after yourself like you are meant to be doing, instead of milking the system!
Before newstart became jobkeeper, newstart was not enough to live on (eg mortgage), so you really need savings available to top it up. Wise to avoid spending all savings before getting payments, so you can last as long as possible while job hunting before you start to experience real financial strife. Jobkeeper might also not be enough to live on for some and need savings for top up.
Its Newstart/Jobseeker (Jobkeeper is something different).
Wise to avoid spending all savings before getting payments
Jobseeker is a safety net, not income supplement to 'protect' your savings while unemployed. Just like the pension, if you have 'liquid assets' you have to use those funds to pay for your retirement, not the gov pension.
doesn't the liquid asset waiting period only apply the first time you apply for cl, and once you're on it, it no longer matters? since its currently waived, doesn't it essentially mean anyone can apply and immediately receive payments without serving the waiting period (regardless of what their liquid assets are)?
If you have already been on, it doesnt apply, you have already served the waiting period
So if I stopped working from 1 July, and I need to serve maximum waiting period(13 weeks), i will have waiting period from 25 sept to 8 oct.(2 weeks remaining). Correct?
couldnt you get jobseeker payment as soon as you have no income?
probably not because the waiting period didnt apply while you were on
Doesn't these 2 statements make it quite clear?
As part of the response to the Coronavirus (COVID-19) outbreak, the liquid assets test waiting period does not apply from 25 March 2020 to 24 September 2020 for the following payments: JSP, YA and Austudy. A person already serving a waiting period at 25 March 2020 will no longer serve the waiting period and be backdated to the date of claim.
At the end of the exemption period, recipients do not have any remaining waiting period to serve.
@hentabara: Looks like it, according to the explaination above. Makes sense from the spirit of the exemption too, during March, they had to roll things out quickly as loads of people lost their jobs and there were no new ones available.
Now, for all other states except VIC, jobs are improving, so people who have stopped working after 24 Sep have a much better chance of another job.
Here's another wierd scenario if they did implement LAWP for those already receiving CL during the exemption period:
Guy A applies for CL at the start/middle Sep. Gets CL payments as its still within exemption period. 24 Sep comes around, suddenly LAWP is applied and he only got his first payment, then the payments stop. Sounds wierd right?
That being said, Parliament is still going back and forth on the reduction in the rate - heard opposition is going to block it from reducing after 24 Sep.
@NotAnAudiophile: OK I dug up more from Centrelink itself too:
The liquid assets waiting period may apply to you if you're making a new claim for 1 of the following payments:
JobSeeker Payment
Sickness Allowance
Youth Allowance
Austudy.
People on Centrelink already have their claims assessed and approved so its no longer a new claim.
Assuming you are under Age Pension Age (~65+ depending of DOB) you could consider putting it into super. Being inside super there's rules on getting your hands on it.
Other strategy considerations*
-paying off credit cards
-repaying mortgage
-spending it
-upsizing (ie buying more expensive house)
-hiding it under the bed (Centrelink may ask where the money went)
-give it to a ozbargainer (Centrelink may question this gift if it excess $10,000pa or $30,000 over rolling 5 year period)
*You might want to speak to a licenced financial planner or Centrelink Financial Information Service to discuss options further.
Send nu money please
Crypto - USDT
crypto still gets tracked…
Poker machine tickets expire 12 months after they are issued. Not suggesting you go and gamble all your savings, but in the off chance you manage to cash out a ticket…
You may need to sign something when you cash out after a period of time though. You might not be able to instantly cash out the excess amount over $5k on a single ticket, but I’m sure lots of punters play on a few machines and cash out a few tickets to avoid waiting for a bank transfer.
rang centrelink today. they advised they do not use the liquid assets test. ring them to get the right info. speak to them rather than rely on secondary sources. I had earlier rang their FIS officer who also never mentioned liquid assets. they use a global assets test of $401500 or job seeker it seems. not sure about job keeper.
If you have a mortgage with redraw, perhaps throw it on there so you can access it later?