What happens to the money I receive as Caronavirus/Covid-19 payments?
The Australian Financial Security Authority (AFSA) have provided advice on how the various Coronavirus/Covid-19 payments are being treated in bankruptcy. The following information is from the AFSA website.
Economic support payments: Are NOT claimable by your Trustee as income or as an asset, regardless of whether you receive the payments before or after the date of bankruptcy.
COVID-19 supplement payments: ARE claimable by the Trustee if you receive them BEFORE the date of bankruptcy and it remains in your bank account when you become bankrupt. During bankruptcy these payments are included in your after-tax income amount. If your after-tax income exceeds a set amount, you may have to make compulsory income payments.
More information about these types of payment are available at Services Australia.
Early access to superannuation: Should you receive payments from your superannuation under the Coronavirus Economic Response Package, there is no change to the way this payment is treated in bankruptcy. See here for details on what happens to your superannuation during bankruptcy.
The Australian Taxation Office has more information about super payments on their website at Early access to your super.