Budget 2022: Cost of living payments announced
The Government has announced a series of measures and one-off payments to help Australians cope with the increased cost of living.
Announcing the Federal Budget, which had been brought forward from May to March in light of this year’s election, Treasurer Josh Frydenberg, said: “A strong economy means a stronger Budget. This is what we deliver tonight. The largest and fastest improvement to the Budget bottom line in over 70 years.
“As we emerge from the pandemic, we are building an even stronger, more secure and confident Australia.”
Measures announced included:
LMITO
The Treasurer, Josh Frydenberg, announced a one-off payment of $420 for those low- and middle-income earners.
Individuals receiving the low- and middle-income tax offset (LMITO) would receive a maximum of $1,500 and couples would receive a maximum of $3,000 from 1 July, 2022.
This measure was in addition to the $40 billion in tax relief provided since the start of the pandemic.
Cost of Living Payment
He also announced a $250 Cost of Living Payment which would be delivered to six million Australians including carers, pensioners, veterans and eligible self-funded retirees.
When combined with the LMITO, this could mean a single pensioner could receive more than $500 in additional support over the next six months.
Paid Parental Leave
Eligibility of the scheme would be expanded and families would be able to access 20 weeks of leave, including single parents for the first time. Dad and Partner Pay would be rolled into Parental Leave to create a fully-flexible single scheme.
The income test would also be broadened to have an additional household income eligibility test.
Fuel excise
With fuel being one of the biggest costs affected by the rising inflation, Frydenberg announced fuel excise would be cut in half for the next six months.
This would save a family with two cars around $30 a week or $700 over the next six months.
This would take effect from midnight on 29 April, 2022.
AUTHOR
Laura Dew
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial managing director, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
