Big Banks Offer Australians Support During the Latest Lockdowns

DG Institute
DG Institute

Published 2:38 am 21 Jul 2021

Facebook Twitter Whatsapp Linkedin

The Australian Banking Association has rolled out support measures for Australians struggling with the latest COVID-19 lockdowns. 

Victoria‘s lockdowns have just been extended for a week after 13 new local cases of the Delta variant of COVID-19 were reported on Monday in the state. 

South Australia will also go into lockdown at 6 pm tonight following the discovery of a positive case of the Delta variant of COVID-19, and New South Wales has recorded 110 new cases of COVID-19 today with lockdowns set to remain until the 30th of July at the earliest. 

Additionally, consistently high cases of COVID-19 in New South Wales pushed the NSW Government to implement a ban on construction in the state, which is estimated to cost NSW between $800 million – $1 billion per week. 

Both Victoria and New South Wales have implemented ongoing COVID-19 relief packages for individuals affected by the lockdowns, including $600 a week for individuals who are unable to work and $375 for those who work fewer than 20 hours per week. Furthermore, there are business grants available for those affected by lockdown restrictions in Victoria and NSW, in which businesses may be eligible for one-off or recurring payments depending on their circumstances. 

Individuals across the country may also be eligible for a payment if they get a COVID test and are required to isolate afterwards.

For federal government COVID-19 relief, see here. 

The Banks are Lending a Hand 

In addition to federal and state government support, the Australian Banking Association (ABA), composed of the country’s biggest banks, announced various support measures designed to assist those struggling financially with the lockdowns. 

The relief includes repayment deferrals of up to three months for small businesses that have a turnover of less than $5 million and that are less than $3 million in debt.

Additionally, both individuals and businesses can request payment deferrals on their home loans, which would be assessed on a monthly basis by the bank. 

Speaking on the ABA’s support measures, the NSW Treasurer Dominic Perrottet Tweeted:

“We welcome the support measures the banks have announced to help businesses and homeowners affected by the NSW lockdowns.”

The CEO of the Australian Banking Association, Anna Bligh also spoke on the association’s decision, stating that “customers can rest assured that if they need help, they will get it. Your bank will help you find a way through, don’t tough it out on your own.”

“Banks also stand ready to support larger businesses and they will be assessed on a case by case basis. Customers who need support should contact their bank,” said Ms Bligh. 

CBA offers moratorium on foreclosures

The Commonwealth Bank of Australia also announced yesterday that it would be implementing measures in order to help Australians that are struggling with the pandemic, including a moratorium on any home foreclosures until February 2022 if customers are unable to make their home loan repayments. 

Commbank’s CEO Matt Comyn said yesterday that “extending our freeze on any foreclosures will give those customers who are again impacted by COVID-19 more time to get back on their feet, and reassurance that they can remain in their home this Christmas and into next year.”

The conditions surrounding the moratorium are as follows: 

“The moratorium will allow Owner Occupier customers who have made their home loan repayments on time for at least 12 months prior to their deferral, but are again unable to make their full repayments, to remain in their home until at least February 2022.”

The freeze on foreclosures was scheduled to end in September this year but will be extended for five months in light of the renewed lockdowns across the nation.

Good Debt Vs Bad Debt With Dominique Grubisa - DG Institute

Lawyer, Asset Protection Specialist and Property Educator

Dominique Grubisa is a practicing lawyer with over 25 years experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

About DG Institute

Founded in 2009, DG Institute strives to empower everyday Australians to grow and protect their wealth. Our goal is to provide direction, motivation and inspiration to our clients and help them perform at their very best. We do that through our professional services, in addition to teaching them how to grow their wealth through property and business education.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

Our Happy Clients

  • Lisa Mitchell

    "My name’s Lisa Mitchell. I live in Chatswood in Sydney. Since joining the Elite Mentoring Program. I’ve done two deals made around $240,000. And probably when I add the extra rental that’s coming, it’s another $70,000. I could not be happier with that result. And I’m amazed by it, to be honest, I’m absolutely amazed. […]"

    Lisa Mitchell, Property Uplift Elite Mentoring Graduate

  • Jennine Kimbal

    "Janine Kimball from Newcastle since joining DG Institute we have two projects currently in progress with a gross realization value of about 10 and a half million dollars expected profit from those is going to be probably around $1.8 million when they complete the reason we joined DG Institute and the Elite Mentoring Program, was […]"

    Jennine Kimbal, Property Uplift Elite Mentoring Graduate

  • Michael Kuligowski

    "Hi, my name’s Michael, and I’m from New South Wales. Since joining the Elite Mentoring, we’ve been able to secure three properties. Well, under market value, both in inner Sydney, New South Wales, also regional new South Wales and one in Victoria by, undertaking, this program, we’ve definitely benefited, and we can see that we’re […]"

    Michael Kuligowski, Elite Mentoring Graduate (Property Uplift & Real Estate Rescue)

  • Sharon Harvey

    "Hi, I’m Sharon Harvey. I’m from South Australia. I joined the Elite Program because I was looking for something more in property and I was looking for more education and somebody who would inspire me and Dominique was that person. I listened to her talk and realize that there was a great synergy between us. […]"

    Sharon Harvey, Property Uplift Elite Mentoring Graduate

You May Also like to Read

Australia’s Christmas Nightmare

Many Australians could be in for a rude awakening this Christmas.  As Australia finally emerges from lockdowns, it...

Vaccine Passports Incoming: What it Means For Australia

Who will need them and how will the passports impact the economy?  Last week, Prime Minister, Scott Morrison threw his...

Australian Wages See Biggest Drop in 20 Years

Australians are now getting less bang for their buck than ever as ABS data finds wage growth is at record lows.  On...

NSW’s Proposed Changes to Stamp Duty Explained

If you’re hoping to buy property in New South Wales, stamp duty is likely putting an additional strain on your finances....

Will Australia Go Into Another Recession?

With more than half of the country now in lockdown, the threat of another recession looms over Australia.  Prior to...

How an Early Rise in Interest Rates Could Affect Your Home Loan

It looks like the RBA may increase interest rates sooner than expected - and this could impact your monthly...