The Federal Government has included further tax rebates for low and middle-income earners and direct cash payments to pensioners and welfare recipients in the 2022 budget.
During his 2022 budget speech, Federal Treasurer Josh Frydenberg announced a $420 “cost of living tax offset” for people earning less than $126,000 when they submit their tax returns later in the year, while pensioners and welfare recipients will receive $250 dollars to help soften the rising costs of living.
Federal Treasurer Josh Frydenberg said more people are at work and fewer people are on welfare compared to a year ago.
“Individuals already receiving the low and middle-income tax offset will now receive up to $1,500 and couples up to $3,000 from the first of July this year,” he said.
“This measure comes on top of the $40 billion in tax relief already provided by our government since the start of the pandemic.”
People currently eligible for the low and middle income offset receive between $255 and $1080 dollars when they file their taxes, however, with the announced changes they will receive between $475 and $1500.
Mr Frydenberg said the $250 payment to pensioners and welfare recipients would be received within weeks.
“Six million Australians, pensioners, carers, veterans, job seekers eligible self-funded retirees and concession cardholders will benefit together within existing indexation arrangements,” he said.
“This will see a single pensioner receive more than $500 in additional support over the next six months just when they needed it most.”
The tax offset and payments are a part of the Federal Government’s “cost of living” package to reduce the impact of inflation and rising prices.
