Federal budget 2022: Millions of Australians set to receive one-off $250 cash handout within weeks – here’s who is eligible

Australia’s pensioners are in line for a one-off $ 250 cash payment as part of the federal government’s plan to soften the impact of the rising cost of living.

7NEWS Political Editor Mark Riley, who broke the news of the cash boost, had previously revealed that the payment would be between $ 200 and $ 400.

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7NEWS now understands the cash boost was capped at $ 250 to avoid additional pressure on inflation.

Politicians have been Reluctant to provide exact details of the payment, saying more would be Revealed on budget night on March 29.

The payment is not designed to be a stimulus, which is why it is not likely to exceed $ 400, Riley added Sunrisethat would threaten inflation and subsequently cause rising interest rates.

“(A payment of) $ 700 or $ 800, and you’re talking about stimulus and this is not an economy that needs to be stimulated at the moment,” he said.

“We’ve already got inflation threatening to break out, which would lead to higher interest rates, which would lead to higher wages, which would be a good thing, but that would lead to higher prices and then you’ll get in an upward spiral.”

Federal Treasurer Josh Frydenberg has previously received payments will be made across the country to help Australians pay for the rising cost of living amid petrol and grocery price hikes.

“The number one topic around the kitchen table in Australia is the cost of living and so there will be some relief in this budget,” he said.

Mr Frydenberg added the cost of living relief would be “temporary, targeted and proportionate to the challenge we face”.

Federal Treasurer Josh Frydenberg said ‘there will be some relief in this budget’. Credit: AAP

7NEWS.com.au understands the payments will be made into Aussie bank accounts within weeks ahead of a likely federal election in May.

“You can be certain that it will hit bank accounts before the election to get as much political Bang for the buck as possible … and I’m told will be paid through existing government programs so it can go out quickly,” Riley said .

However, Riley doesn’t expect the cash splash to make much difference in voting outcomes.

“Voters often see these last-minute bonuses in the shadows of elections as acts of desperation. They’ll gladly take the money, but still vote the way they intended, ”they said.

It is understood the bonuses will be paid through existing government programs by an agency such as the Australian Tax Office or Services Australia, so that funds can be deposited quickly and directly.

The Morrison government is expected to announce the payment officially on budget day next week.

“We said we would be targeted in the supports that we provided, that they would have a start date and they’d have a stop date, that there’d be a pathway in and there’d be a pathway out,” he told Reporters last Wednesday.

“We must be targeted in the things that we do, so we don’t add to those inflationary pressures.”

Calls to keep the $ 1080 tax offset

Frydenberg may yet extend a tax break for low-income earners in his March 29 budget as the government puts together a relief package for households facing heated cost-of-living pressures.

The low and middle income income tax offset (LMITO), which provides tax relief of up to $ 1080 a year, is due to end on June 30.

Mr Frydenberg has been reluctant to say whether this would be extended again, although has pointed out taxpayers can still claim it when they do their tax return for this financial year.

Australia Institute chief economist Richard Denniss said if the LMITO was not extended in the budget this month, workers such as teachers, nurses and midwives would pay $ 1080 more in tax.

In contrast, the so-called “stage three” tax cuts legislated to come into effect in 2024 would give a tax break to bank CEOs, surgeons and federal politicians worth $ 9075, Dr Denniss said.

Treasurer Josh Frydenberg
Treasurer Josh Frydenberg has been reluctant to say whether LMITO would be extended again. Credit: AAP

The stage three tax cuts will see those earning more than $ 200,000 raking in the biggest benefit, while those on less than $ 45,000 will receive nothing.

“How is it reasonable that a bank CEO earning $ 5.2 million a year will be given a $ 9,000 tax cut while someone working in aged care or on the minimum wage receives nothing?” Dr. Denniss said.

The changes mean someone earning $ 45,000 will pay the same marginal tax rate as someone earning $ 200,000.

“The stage three plan doesn’t just fail the pub test, it’s bad economics,” he said.

“Low and middle-income earners are more likely to spend their tax cut back into the economy, creating jobs and growth, while the highest income earners are more likely to stash the additional cash away.”

– With AAP


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