The 2022 Federal Budget has come and gone for another year. If you’d like to travel back through and read about who the winners and losers are for this year, here is where you will find our wrap up. One of the biggest promises that caught the attention of Aussies in 2022, however, was the news of a once-off $250 cost of living payment coming some peoples’ way this April.
Here’s what we know about the payment and who will receive it.
Once-off cost of living payment
Per the Federal Budget website, the government is giving six million people a small once-off income tax-exempt payment of $250 to “help Australians meet the cost of living pressures”. Uh-huh.
The payment will be paid automatically in April 2022 to “eligible pensioners, welfare recipients, veterans and eligible concession card holders”. Folks do not need to apply for the payment, it will be allocated to eligible Australians who receive assorted government support payments.
As the ABC reports, the Australians eligible for a once-off payment here are those supported but the below schemes:
- 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.
As the ABC reports, eligible people will begin receiving the cost of living payment as of April 28, 2022. If you are expecting money, check the bank account in which you usually receive government payments. The ABC shares that a letter should be sent to you confirming the allocation of funds, also
According to the government announcement, this once-off $250 payment will also be combined with an increase to Age Pension, Disability Support Pension and Carer Payment rates in September 2022. The last increase to these rates was in March 2022 (by 2.1 per cent) – it’s been stated the coming increase will be at a similar rate.
You can read more on the cost of living payment announcement here.
Once-off $420 tax offset
In addition to the $250 cost of living payment, the government also announced a cost of living tax offset of $420 for certain Australians.
This offset, the government announced, will be combined with the existing low and middle income tax offset (LMITO) for the 21-2022 tax season.
The Federal Budget website writes that “eligible low- and middle-income earners will receive up to $1,500 for a single income household, or up to $3,000 for a dual income household”.
Here is a breakdown of how the $420 cost of living tax offset may look to Aussies, according to the government website.
Some ten million Australians will be eligible for the tax offset bump, which is set to roll out from July 1, 2022.
You can read more about the once-off cost of living tax offset announcement here.
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