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Tax cuts and payments in Budget 2022
Who gets a $250 payment and the $420 tax offset?
In an attempt to reduce the cost of living in the coming months, the government has confirmed it will be offering a few small payments and tax cuts. It has to be noted that many are however one-offs, or temporary payments.
$250 cost-of-living payment
If you receive government payments, you could be eligible for a one-off ‘cost -of-living payment’ worth $250.
You do not need to apply for this, as it will be paid automatically if you are one of the six million Australians who are on various government payments.
The payment will be exempt from taxation and will not count as income support for the purposes of any income-support payment. Only one payment will be received, even if you are eligible under two or more categories.
The payment will be given to eligible recipients of the following schemes, and to concession card holders:
- Age Pension
- Disability Support Pension
- Parenting Payment
- Carer Payment
- Carer Allowance (if not in receipt of a primary income support payment)
- Jobseeker Payment
- Youth Allowance
- Austudy and Abstudy Living Allowance
- Double Orphan Pension
- Special Benefit
- Farm Household Allowance
- Pensioner Concession Card (PCC) holders
- Commonwealth Seniors Health Card holders
- Eligible Veterans’ Affairs payment recipients
- Veteran Gold card holders.
$420 Cost-of-living tax offset
The government will be phasing out the Low and Middle Income Tax Offset (LMITO), but it will be increasing the payment for everyone by $420 for its last year of operation.
It has been giving annual tax cuts worth between $255 and $1080, depending on taxable income, to people earning below $126,001 per year, however, this financial year (2021-22) will be its final year of operation.
Fuel excise
The fuel excise on diesel and petrol will halve from March 30, from 44.2 cents per litre to 22.1 litre. This will last for six months.
On September 28, the fuel excise will revert to 44.2 cents per litre.
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Date published 31 Mar 2022 | Last updated 9 Jul 2022
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