Cheaper medicine, a temporary cut to fuel excise, a one-off cost-of-living tax offset and deductions for small businesses who spend on training for employees are among the benefits of tonight’s 2022 Federal Budget.
Delivering the Budget ahead of this year’s Federal election, Treasurer Josh Frydenberg says the government’s practical approach will reduce financial pressure for families and low to middle-income earners and help small business owners.
“Higher fuel, food and shipping costs are increasing inflation and stretching household budgets,” he says.
“Tonight the Morrison Government announces a new temporary, targeted and responsible cost of living package to ease these pressures.
“Practical measures that will make a difference.”
Mr Frydenberg says the 50 percent cut to fuel excise will save a two-car household that fills up once a week $700 in the six months it will be in place.
Addressing concerns that petrol companies will not pass the reduction on to motorists, Mr Frydenberg says the competition watchdog will be asked to monitor bowser prices to ensure the cut is delivered.
There will also be a one‑off $420 cost of living tax offset for more than 10 million low‑and‑middle income earners.
People already receiving the low and middle-income tax offset will receive up to $1500 and couples up to $3000 from July 1, and pensioners, carers, veterans, jobseekers and eligible self-funded retirees will get a one‑off $250 Cost of Living Payment.
Combined with existing arrangements, a single pensioner will pocket more than $500 in additional support over the next six months – or about $19 a week.
Mr Frydenberg says relief is on the way for people who take regular medication, with them paying for fewer scripts before becoming eligible for free or discounted medicines.
Mental health is also a priority, with more Headspace services, community‑based treatment centres and digital mental health support, he says.