Temporary reduction in fuel excise
| From | 12.01am 30 March 2022 |
A few jokes are going around social media about the price of fuel.
The Government will temporarily reduce the excise and excise-equivalent customs duty rate that applies to petrol and diesel by 50% for six months from Budget night. The current 44.2 cents per litre excise rate will reduce to 22.1 cents per litre from Budget night. However, the measure is subject to the passage of the enabling legislation, so don’t expect to see a change right away.
The reduction extends to all other fuel and petroleum-based products except aviation fuels.
After the six months, on 28 September 2022, the excise and excise-equivalent customs duty rates revert to previous rates, including any indexation applied during the six months.
The Australian Competition and Consumer Commission (ACCC) will monitor the price behaviour of retailers to ensure that the lower excise rate is passed on to consumers.
The measure costs $5.6bn.
Low and middle-income cost of living tax offset increase
| From | 1 July 2021 to 30 June 2022 |
The low and middle-income tax offset (LMITO) currently provides a reduction in tax of up to $1,080 for individuals with a taxable income of up to $126,000.
The tax offset is triggered when a taxpayer lodges their 2021-22 tax return.
For 2021-22, the LMITO will be increased by $420, which means that the proposed new rates for individuals are as follows:
| Taxable income | Offset |
| $37,000 or less | $675 |
| Between $37,001 and $48,000 | $675 plus 7.5 cents for every dollar above $37,000, up to a maximum of $1,500 |
| Between $48,001 and $90,000 | $1,500 |
| Between $90,001 and $126,000 | $1,500 minus 3 cents for every dollar of the amount above $90,000 |
$250 cost of living payment
| From | April 2022 |
A one-off $250 ‘cost of living payment’ will be provided to Australian resident recipients of the following payments and concession cardholders:
- Age Pension
- Disability Support Pension
- Parenting Payment
- Carer Payment
- Carer Allowance (if not in receipt of a primary income support payment)
- Jobseeker Payment
- Youth Allowance
- Austudy and Abstudy Living Allowance
- Double Orphan Pension
- Special Benefit
- Farm Household Allowance
- Pensioner Concession Card (PCC) holders
- Commonwealth Seniors Health Cardholders
- Eligible Veterans’ Affairs payment recipients and Veteran Gold cardholders.
The payments are exempt from taxation and will not count as income support for any income support payment. An individual can only receive one payment.
Medicare levy low-income threshold increased
| From | 1 July 2021 |
The Medicare levy low-income thresholds for seniors and pensioners, families and singles will increase from 1 July 2021.
| 2020-21 | 2021-22 | |
| Singles | $23,226 | $23,365 |
| Family threshold | $39,167 | $39,402 |
| Single seniors and pensioners | $36,705 | $36,925 |
| Family threshold for seniors and pensioners | $51,094 | $51,401 |
For each dependent child or student, the family income thresholds increase by a further $3,619 instead of the previous amount of $3,597.
Home Guarantee Scheme extended
The Home Guarantee Scheme guarantees part of an eligible buyer’s home loan, enabling people to buy a home with a smaller deposit and without lender’s mortgage insurance. The Government has extended two existing guarantees and introduced a new regional scheme.
Just before the Budget, the Government announced:
- First Home Guarantee – from 1 July 2022, an increase from 10,000 to 35,000 guarantees to support eligible first home buyers purchasing a new or existing home.
- Single parent Family Home Guarantee – 5,000 guarantees each year from 1 July 2022 to 30 June 2025. The family home guarantee supports eligible single parents with children to buy their first home or re-enter the housing market with a deposit of as little as 2%.
- Introduction of a Regional Home Guarantee. This guarantee will support eligible citizens and permanent residents who have not owed a home for five years (including non-first home buyers) to purchase or construct a new home in regional areas with a minimum 5% deposit areas (subject to the passage of enabling legislation).
| ResourcesMedia release: 2022-23 Budget Backs Aspiring HomeownersNational Housing Finance and Investment Corporation |
Digitalising trust income reporting
| From | 1 July 2024 |
Trust and beneficiary income reporting and processing will be digitalised, with all trusts being provided with the option of lodging income tax returns electronically.
While this measure will reduce compliance costs, it will also increase transparency and provide the ATO with a greater insight into where anomalies occur.