Budget 2022: How will you benefit?
The government has announced tax cuts and additional homebuyer support as part of its pre-election budget
Treasurer Josh Frydenberg has handed down the Government's 2022/23 budget, announcing a range of measures. This year's budget focused on the rising cost of living in Australia, with Frydenberg calling out fuel prices and house prices specifically.
Finder's own Consumer Sentiment Tracker shows that a record number of Australians are struggling to meet their living costs and are saving far less money than they have in years.
As this year's budget is a pre-election budget, some of its measures would only come into play if the Coalition is re-elected. However, some measures (like the petrol tax cuts) will be implemented as soon as possible.
Petrol tax cuts
Calling out the rising cost of fuel prices over the last few months, Frydenberg began by announcing a temporary tax cut of 22.1 cents per litre. That's a 50% tax cut, meaning fuel tax will sit at 22.1 cents per litre down from an existing 44.2 cents per litre. This will come into play from midnight tonight (29 March).
The tax cut will be in place for the next six months. It should see a petrol price drop of about 24 cents, thanks to lower GST being paid on the lower price. Frydenberg said that for the average family with two cars this could save them $30 a week (about $14 per car), amounting to around $700 over the next six months.
Frydenberg added that this would not be at the cost of road improvements, which would see $12 billion spent in the coming year.
Extending the existing tax offset for low and medium income earners, the Coalition seeks to provide an additional $420 tax offset. Anyone with an income of less than $126,000 will automatically receive the payment when they lodge their tax returns after 1 July (as long as you earn about the tax-free threshold).
The low to middle income tax offset (LMITO) was already providing up to $1,080 for individuals, but the additional offset would individuals receiving up to $1,500 this year and couples up to $3,000.
Home Guarantee Schemes
The Government would increase the number of guarantees under the Home Guarantee Scheme to 50,000 per year for the next three years from the start of the 22/23 financial year and then 35,000 from then on. Frydenberg said extending the scheme would help "more single parents buy a home with a deposit as little as 2%, help more first home buyers buy a home with as little as 5%".
- There will be 35,000 places per year for the First Home Guarantee (previously known as the First Home Loan Deposit Scheme).
- There will be 5,000 places until June 2025 for the Family Home Guarantee.
- There will be 10,000 places until June 2025 for a new Regional Home Guarantee, supporting citizens and permanent residents who have not owned a home for at least five years to purchase a home in a regional area with as little as a 5% deposit.
The Government has also set aside one off payments of $250 in April. This would be for eligible recipients of welfare payments, such as those receiving the age pension, disability support pension, carer payments, jobseeker payments, and eligible veterans.