Federal budget to contribute to alleviating the cost of living pressures

April,26,2022

The COVID-19 outbreak, the Russia-Ukraine conflict, and extreme weather disasters are all driving up the cost of products.

In an economy recuperating from the outbreak, a 4% unemployment rate and a $78 billion budget deficit for 2022–23 have been confirmed. As global uncertainties raise the cost of living, major components of the Federal Budget include cost-of-living relief in the form of an increased Low- and Middle-Income Tax Offset, a one-time $250 payment for welfare users and pensioners, and a six-month gasoline excise relief.

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2022-20223 Federal Budget contribution to help with living costs

As part of our plan for a better future, the government is assisting Australians in dealing with these cost-of-living concerns by:

- creating more jobs and applying upward wage pressure

- providing a one-time cost of living tax credit and a one-time cost of living payment to the most vulnerable Australians

- easing the financial strains imposed by rising fuel prices on household budgets

- lowering child-care-related out-of-pocket costs

- supplying energy at a lower cost

- assisting aspiring house owners 

- reducing the cost of medications and improving accessibility to them

 

Cost of Living Payment initiative

A $250 one-time incentive for those who are eligible to aid with living costs has been announced. You don't have to record it as income for income support purposes because it isn't taxable.

You must be a Centrelink or Department of Veterans Affairs (DVA) client to qualify for it. On March 29, 2022, you must be residing in Australia and either be receiving an eligible payment or be possessing an eligible concession card. You only get one payment even if you have both an eligible payment and concession card. You don’t need to apply; the Cost of Living Payment is paid automatically.

At a cost of $1.5 billion, this contribution will assist 6 million people. Pensioners make up more than half of those who will profit. Payments will start at the end of April 2022, and they will be automatically paid to all qualified retirees, welfare users, veterans, and concession cardholders. A letter confirming that a payment has been made will be sent to you, if you are eligible.

 

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Australian government’s plan for a better future

The Cost of Living Payment is in addition to the existing indexation procedures, which have resulted in higher income assistance payments. In March 2022, income support payments increased by 2.1 %, helping nearly 5 million Australians. Singles' Age Pension, Disability Support Pension, and Carer Payment rates increased by more than $20 per fortnight, while couples' rates climbed by $30 per fortnight. In September, they will receive a matching raise. Payments are routinely increased to help consumers cope with escalating living costs.

The Cost of Living incentive adds to the government's hip pocket aid, which includes a halving of the excise rate, tax savings, child care support, and lower electricity bills. Taking the pressure off Australians with cost of living support is part of the Government's plan for a stronger future.

 

Disclaimer:The information included in all of our blog content is of general nature only. Any general advice included in this information has been prepared without taking into account your objectives, financial situation or needs.
Because of this, you should consider the appropriateness of the general advice to your objectives, financial situation and needs and obtain professional advice before acting on any general advice that we have provided to you.

 

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