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The Government's just handed down the 2022-23 Federal Budget. Here are all the measures you need to know.
Treasurer Josh Frydenberg - aka Frydo - has just handed down the 2022-23 Federal Budget. If ya don’t know what that is… click here.
First thing’s first: The Government announced a budget deficit of $78 billion for the 2022-23 financial year. That’s slightly lower than the $81 billion that was expected. Oh, and here’s the difference between a budget deficit and a budget surplus, FYI.
But let’s take a look at some of the different measures - and what they mean for you.
The fuel excise is a tax that the Aussie Government charges on petrol and diesel bought at the pump. The current rate is 44.2 cents a litre… Wild, huh!? It means that Aussies pay an average of $1,188 each year in fuel tax… unless ya own an electric vehicle.
The revenue goes back into fixing the roads and supporting councils so they can maintain their roads to a safe standard.
But with petty prices soaring, ScoMo and Frydo have slashed the excise by 50% temporarily. The cut comes into effect from midnight tonight, meaning we should see cheaper prices at the pump tomorrow. The measure will remain in place for 6 months, ending 28 September 2022. After that, the excise will revert to previous rates, including indexation that would have occurred during the 6 month period.
Not bhed!
Times are tough right now, Flux fam. So, the Government is introducing a one-off payment of $420 for low and middle income earners. That's Aussies earning up to $126,000.
It'll cost the government $4.1 billion to implement, and it'll be paid on top of the low-and-middle-income tax offset (aka the lamington), which is worth $1,080.
So, those eligible for the full amount will get a $1,500 windfall at tax time.
Pension and welfare payments already rose on the 20th of March, which set the Government back $2.2 billion. Singles received $20.10 more a fortnight, and couples received $30.20 more a fortnight.
Eligible Aussie pensioners, welfare recipients, veterans and concession card holders will also receive a $250 cost of living payment.
The Government's expanding its Home Guarantee Scheme - which allows Aussies to get into the property market with a smaller deposit, while the rest is 'guaranteed' by the Government.
Instead of 10,000 guarantees each year, there will be 35,000 guarantees available from 1 July 2022.
The first home super saver (FHSS) scheme allows you to save money for your first home inside your super fund. It means you can make before-tax contributions to your super fund - where you'll likely pay a lower tax rate. The effective tax rate on your superannuation is 15% - whereas it could be much higher on your income.
Previously, first-home buyers could withdraw a maximum of $30,000 of voluntary contributions under the scheme. But now, there is a maximum of $50,000 of voluntary contributions. This means you can save more money in your super fund for your first home!
Around 250,000 families in Australia have children in childcare. The Government's childcare initiatives aims to reduce the cost of living pressures by saving families on average, around $2,260 per year. This will obviously depend on household income and the number of children in child care - but it's a pretty handy kicker.
The Government will provide $1.3 billion over 6 years from 2021-22 towards initiatives to reduce all forms of family, domestic and sexual violence against women and children.
That includes $104.4 million from 2022-23 to expand the role of the national prevention organisation, Our Watch.
In Australia, over 800,000 women suffer from endometriosis.
So, the Government's committed a record $58 million to improve endometriosis diagnosis and primary care support. New clinics will be established in every state and territory. About time!
The Government will provide $547 million over 5 years from 2021-22. That includes $52.3 million over 4 years from 2022-23 for Lifeline to provide mental health support and $9.7 million over 3 years from 2022-23 to better manage mental health and wellbeing in schools.
With Russia still waging war on Ukraine, the Government announced $156.6 million in assistance for Ukraine. That includes $91 million in lethal and non-lethal military assistance as well as $65 million in humanitarian assistance.
Big news for our furry friends! The Government has committed $53 million over 5 years from 2021-22 and $2.5 million ongoing to boost the long-term protection and recovery efforts for Australia’s koalas. The plan is to restore koala habitats, improve our understanding of koala populations, supporting training in koala treatment centres and strengthen research into koala health outcomes.
The Government’s committed $1 billion to protect the Great Barrier Reef over 9 years from 2021-22, which will also support 64,000 Queenslanders’ jobs.
The new funding would back world-leading marine science, the deployment of new climate adaptation tech, major investments in water quality programs and state of the art water management practices.
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