Earlier this week, Treasurer Josh Frydenberg delivered the 2022/23 Commonwealth Budget.
With a federal election just around the corner, the announcements remained focussed on reducing the national debt wracked up during the pandemic and helping Australians with the increased cost of living.
Given this, the government has delivered good news for families with an improved parental leave scheme, additional support for concession card holders and a lower threshold on the Pharmaceutical Benefits Scheme.
Reduction in petrol prices
The government adds a fuel excise (or flat sales tax) on all fuel bought at the bowser. It’s no secret that a rise in the cost of living and the Ukraine and Russia conflict has put pressure on the petrol pump price.
Currently petrol is taxed at 44.2 cents per litre. However, this year’s budget states budget this will be reduced to 22.1 cents per litre for at least the next six months. A welcome relief for many households across the country.
Low and Middle Income Bonus
The Low and Middle Income Tax Offset (LMITO) will continue. This means that anyone earning $126,000 per year could receive up to $1080 from their tax return PLUS $420 for the current year. A $1500 bonus for those eligible which will give many households some extra spending money for the year.
Paid Parental Leave Changes
Eligibility for the government’s Paid Parent Leave Payment scheme has changed under the new budget.
Single parents will now be able to access the full 20 weeks of paid parental leave.
In addition, the Dad and Partner Pay scheme has been rolled into a single scheme called Parental Leave Pay. This allows parents to share their leave across 20 weeks of leave for parents to share in a way that suits them best.
This leave can be taken any time within two years of the birth or adoption of a child.
Help for non-first home buyers
By way of combatting this social issue of housing affordability, they budget states includes an extension of the Home Guarantee Scheme (for those eligible).
This means there will be 50,000 places for three years from next financial year, and 35,000 a year ongoing. This includes 35,000 guarantees per year for the First Home Guarantee (formerly the First Home Loan Deposit Scheme or FHLDS) and 5,000 places for the Family Home Guarantee. This is the equivalent of a 2% deposit for eligible sole parents.
There will also be 10,000 places per year until 30 June 2025 for a new Regional Home Guarantee. This is a great scheme for those buying in a regional area who have not owned a home for five years and have 5% deposit.
Concession card holder payment
Concession card holders on specific schemes are set to receive a one-off, income tax exempt cash bonus of $250 to help with escalating cost of living demands. This payment is expected to land in bank accounts over the next few weeks.
Increased Health Benefits
The Pharmaceutical Benefits Scheme will get a welcome boost with lower costs for certain medications.
The National Mental Health and Suicide Prevention Plan will also ensure that Australians on a mental health plan will be given 10 subsidised visits in line with the initial pandemic health response.
Above all not an overly exciting budget delivery but there are certainly some small wins for families which will help many Australians throughout the year which will offset the ongoing cost of living increases.
Phoebe Blamey, Author, Happy Money Journey
Phoebe Blamey who is the author of the Happy Money Journey – a guide to helping women become unshakeable with their money! It is a friendly, fearless personal advice to help make good money decisions and live life on your own terms.
The Happy Money Journey was born from Phoebe’s years of experience in learning about money and seeing how different people approach it. She also lived through her own happy money journey, from being drowned in credit card debt to now owning her own business and spreading her amazing energy and knowledge.
Phoebe is a top mortgage broker, business owner, has 20-years’ experience in the financial industry and more importantly, is an incredible single mother.
Read more – Mums left behind AGAIN as government refuses to pay super on parental leave