The New South Wales Government is planning to give all adult residents $100 to spend on entertainment, to kick start the state’s economy. Here’s what that means for you.
By Julie Nipperess
The State Government has recently announced a very welcome ‘Out and About’ spending package, which will be unveiled in its upcoming budget.
The scheme is going to give all adult residents across the state $100 to spend on entertainment.
The money is coming in the form of vouchers and can be spent at cafes, restaurants, pubs, movie theatres and other entertainment venues that have signed up to the scheme and put CovidSafe plans in place.
The scheme will be trialled in the Sydney CBD next month and then launched fully next year. And that’s great news! While life is slowly returning to normal, many people are still doing it pretty tough, financially.
Stimulating the economy
The vouchers will be made available through the Service NSW app and, as the name suggests, are designed to get people ‘out and about’, and that’s an idea I love.
Many of us have been cooped up for months, and with the added pressure on finances for those who’ve lost jobs or had their income reduced by the pandemic, one of the best things you can do for your mental health is catch up with friends and family.
Of course, you don’t have to spend money to do this, but… thanks to the NSW Government, now you can!
The benefit for small businesses is that these vouchers will keep people spending long after Christmas and into the New Year. Small businesses are the backbone of our economy, and they employ many hundreds of thousands of Australians, so we need to keep them afloat while the economy is still slow.
There are still unpredictable times ahead
The overall outlook is still uncertain, and, unfortunately, it is most definitely unpredictable. While some businesses are thriving, others are taking a much longer time to recover, and unemployment is still expected to rise over the coming months.
Essentially, it would be wise to just continue to carefully watch your spending, keep topping up your savings whenever you can, and avoid credit card debt or store credit debt over Christmas – they are the most expensive forms of debt and can easily spiral out of control if you can’t keep up with payments.
The other good news is that banks are making it easier to get loans, and credit rules are relaxing. So, if you are cash strapped, talk to your bank about your mortgage, if you have one, particularly if you think there’s an opportunity to refinance at a lower interest rate. Or take a mortgage holiday. Or change the structure of your loan so you have more access to cash.
Consider a personal loan
The cost of borrowing is very low right now, so if you’re receiving JobKeeper or JobSeeker allowances and really struggling, a small personal loan might be a way to consolidate your current debts and pay them off, to take the pressure off.
Certainly, it would be a wiser choice for managing your finances than dipping into your superannuation, although that remains a temporary option if you really need it.
We’re here to help. Remember, there’s a solution to every problem, and you can pay for financial planning advice from your superannuation.