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The 2022 Federal Budget has spent big to ease the number one topic on the minds and wallets of ordinary Australians: the soaring cost of living.
From record fuel prices to rising grocery, housing and medical costs, the Morrison government has been under pressure to deliver a financial platform that can ease the anxious minds of voters just weeks out from a federal election.
But not everyone came out on top in tonight’s Budget. Here’s a breakdown of the biggest winners – and losers:
Winners and Losers (Orla Maher)
Earning under $126,000 a year? Well, you’re in luck: the government is giving you a one-off $420 payment to be delivered with your tax return.
The payment is designed to help ease the cost of living and will combine with an extension of the low- and middle-income tax offset (the LMITO or “lamington” offset).
Under this, anybody earning under $126,000 a year can receive up to $1500 back for single income households or $3000 back for dual-income households.
Motorists
The government has promised that petrol prices will come down in two weeks’ time after slashing the fuel excise – the main tax on petrol – in half.
Currently paid at 44.2 cents per litre, the fuel excise will be cut in half from midnight tonight to 22.1 cents per litre.
This means on a 40-litre tank of ordinary fuel, the average motorist will save on average $10 a tank or $250 over six months.
Pensioners
While tax offsets are good, the real cost of living is right now: that’s why the government has pledged a one-off $250 payment for eligible pensioners to help pay for things like groceries, housing and petrol.
When combined with existing indexation arrangements, a single pensioner will receive more than $500 in additional support over the next six months.
It’s not just pensioners who will receive the payment either – other recipients include veterans, carers, those on disability pensions and some self-funded retirees.
The $250 Cost of Living Payment explained. (Connor McKenzie)
Apprentices
Aussies looking to pick up a trade are in luck, with the government heavily subsidising apprenticeships in what it calls “priority industries”, such as carpentry.
As part of this Budget, apprentices can receive $5000 over two years (six-monthly instalments of $1250) to help ease the cost of living.
Then whoever hires the apprentices can share in a bounty of grants – including a one-off payment of $4000 and up to $8750 in wage subsidies over three years.
First home buyers
First home buyers were among big winners in this year’s Budget, with the government offering to help more into the property market with deposits as little as just two per cent.
The Home Guarantee Scheme – which allows first-timers to buy a property with just a five per cent deposit or two per cent for single parents – has been doubled to 50,000 places.
The First Home Super Saver Scheme has also been expanded, increasing the maximum amount of voluntary contributions that can be released from $30,000 to $50,000.
Expecting parents
Australians expecting to welcome a baby into the world will be able to partake in a more streamlined paid parental leave scheme that offers up to 20 weeks of paid leave.
Under the scheme, Dad and Partner Pay will be rolled into “Parental Leave Pay” that allows either parent to share the leave as they see fit.
The new scheme can be taken any time within two years of the birth or adoption of a child.
Breast cancer patients
Treasurer Josh Frydenberg personally highlighted patients who are diagnosed with a rare form of breast cancer will be better off after the drug Trodelvy was added to the Pharmaceutical Benefits Scheme (PBS).
Adding Trodelvy to the PBS saves patients who require it on average $80,000 per treatment.
Workers
Anybody with a job – and anybody requiring a job – is in luck, with the Budget forecasting that it expects Australia’s unemployment rate to fall to 3.75 per cent in the September quarter.
That’s the lowest rate in almost 50 years, proving that now is a bountiful time to seek out work or hire big to fill your workforce.
Tonight’s Budget outlines $156.5 million in assistance to Ukraine, to help the nation fight an unsanctioned invasion by Russia.
This includes $91 million in “lethal and non-lethal military support”, $65 million in humanitarian assistance and $500,000 to help resettle Ukrainian refugees in Australia.
Australia’s bottom line
Make no mistake about it – Australia has survived the economic ravages of COVID-19 better than pretty much all other advanced economies.
But that doesn’t mean we’re still not deep in the red.
The Budget deficit for 2022-2023 is $78 billion (or 3.4 per cent of GDP), Australia’s gross debt is $977 billion (tipped to hit $1 trillion next year) and net debt is sitting at $714.9 billion (or 31.1 per cent of GDP).
Granted, we were expected to be in much worse shape – but these aren’t “back in black” figures.
The Great Barrier Reef
The Morrison Government has already committed $1 billion over nine years to help protect the GBR – but only $12.4 million was newly announced in tonight’s Budget.
That $12.4 million will go towards waiving environmental management charges for Queensland tourism operators who visit the reef, to help restart businesses heavily impacted by COVID-19.
www.9news.com.au
From record fuel prices to rising grocery, housing and medical costs, the Morrison government has been under pressure to deliver a financial platform that can ease the anxious minds of voters just weeks out from a federal election.
But not everyone came out on top in tonight’s Budget. Here’s a breakdown of the biggest winners – and losers:
Winners and Losers (Orla Maher)
WINNERS
Low- and middle-income earnersEarning under $126,000 a year? Well, you’re in luck: the government is giving you a one-off $420 payment to be delivered with your tax return.
The payment is designed to help ease the cost of living and will combine with an extension of the low- and middle-income tax offset (the LMITO or “lamington” offset).
Under this, anybody earning under $126,000 a year can receive up to $1500 back for single income households or $3000 back for dual-income households.
Motorists
The government has promised that petrol prices will come down in two weeks’ time after slashing the fuel excise – the main tax on petrol – in half.
Currently paid at 44.2 cents per litre, the fuel excise will be cut in half from midnight tonight to 22.1 cents per litre.
This means on a 40-litre tank of ordinary fuel, the average motorist will save on average $10 a tank or $250 over six months.
Pensioners
While tax offsets are good, the real cost of living is right now: that’s why the government has pledged a one-off $250 payment for eligible pensioners to help pay for things like groceries, housing and petrol.
When combined with existing indexation arrangements, a single pensioner will receive more than $500 in additional support over the next six months.
It’s not just pensioners who will receive the payment either – other recipients include veterans, carers, those on disability pensions and some self-funded retirees.
The $250 Cost of Living Payment explained. (Connor McKenzie)
Apprentices
Aussies looking to pick up a trade are in luck, with the government heavily subsidising apprenticeships in what it calls “priority industries”, such as carpentry.
As part of this Budget, apprentices can receive $5000 over two years (six-monthly instalments of $1250) to help ease the cost of living.
Then whoever hires the apprentices can share in a bounty of grants – including a one-off payment of $4000 and up to $8750 in wage subsidies over three years.
First home buyers
First home buyers were among big winners in this year’s Budget, with the government offering to help more into the property market with deposits as little as just two per cent.
The Home Guarantee Scheme – which allows first-timers to buy a property with just a five per cent deposit or two per cent for single parents – has been doubled to 50,000 places.
The First Home Super Saver Scheme has also been expanded, increasing the maximum amount of voluntary contributions that can be released from $30,000 to $50,000.
Expecting parents
Australians expecting to welcome a baby into the world will be able to partake in a more streamlined paid parental leave scheme that offers up to 20 weeks of paid leave.
Under the scheme, Dad and Partner Pay will be rolled into “Parental Leave Pay” that allows either parent to share the leave as they see fit.
The new scheme can be taken any time within two years of the birth or adoption of a child.
Breast cancer patients
Treasurer Josh Frydenberg personally highlighted patients who are diagnosed with a rare form of breast cancer will be better off after the drug Trodelvy was added to the Pharmaceutical Benefits Scheme (PBS).
Adding Trodelvy to the PBS saves patients who require it on average $80,000 per treatment.
Workers
Anybody with a job – and anybody requiring a job – is in luck, with the Budget forecasting that it expects Australia’s unemployment rate to fall to 3.75 per cent in the September quarter.
That’s the lowest rate in almost 50 years, proving that now is a bountiful time to seek out work or hire big to fill your workforce.
LOSERS
RussiaTonight’s Budget outlines $156.5 million in assistance to Ukraine, to help the nation fight an unsanctioned invasion by Russia.
This includes $91 million in “lethal and non-lethal military support”, $65 million in humanitarian assistance and $500,000 to help resettle Ukrainian refugees in Australia.
Australia’s bottom line
Make no mistake about it – Australia has survived the economic ravages of COVID-19 better than pretty much all other advanced economies.
But that doesn’t mean we’re still not deep in the red.
The Budget deficit for 2022-2023 is $78 billion (or 3.4 per cent of GDP), Australia’s gross debt is $977 billion (tipped to hit $1 trillion next year) and net debt is sitting at $714.9 billion (or 31.1 per cent of GDP).
Granted, we were expected to be in much worse shape – but these aren’t “back in black” figures.
The Great Barrier Reef
The Morrison Government has already committed $1 billion over nine years to help protect the GBR – but only $12.4 million was newly announced in tonight’s Budget.
That $12.4 million will go towards waiving environmental management charges for Queensland tourism operators who visit the reef, to help restart businesses heavily impacted by COVID-19.
Federal Budget 2022: Winner and Losers
The 2022 Federal Budget has promised to ease the cost of living for millions of Australians – but not every...
www.9news.com.au
