Cost of living support for Australians
The Government is helping Australians deal with these cost of living pressures as part of our plan for a stronger future.
Based on a 2021-22 taxable income of:
- You will receive up to $420 from the cost of living tax offset when you file your 2021-22 tax return
- You get the payment of $250 in April 2022
- You will see a 22.1c per litre reduction in fuel excise from 30 March
One-off cost of living tax offset
From 1 July this year, over 10 million individuals will receive a one-off $420 cost of living tax offset. Combined with the low and middle income tax offset (LMITO), eligible low- and middle-income earners will receive up to $1,500 for a single income household, or up to $3,000 for a dual income household.
One-off cost of living payment
To help Australians meet cost of living pressures, the Government is providing a one-off, income tax-exempt payment of $250.
This payment will help 6 million people, at a cost of $1.5 billion.
More than half of those who will benefit are pensioners.
It will be paid automatically to all eligible pensioners, welfare recipients, veterans and eligible concession card holders in April 2022.
Temporary fuel excise relief
As part of Australia’s plan for a stronger future, the Government will reduce fuel excise by 50 per cent for 6 months. This will see excise on petrol and diesel cut from 44.2 cents per litre to 22.1 cents per litre from 30 March.
Fuel subject to a lower excise rate is expected to flow through to the majority of service stations and Australian consumers within a few weeks as stations replenish their stocks.
Kate and Dan live together in their house in Toowoomba. Dan works in construction and is earning $63,000 in 2021-22, and Kate works as an emergency nurse earning $90,000 in 2021-22. With the one-off cost of living tax offset, Kate and Dan will receive a total reduction in their tax liability of $3,000 when they lodge their tax return, $840 more than they would have received without the increase. With the cost of living tax offset, and the Government’s Personal Income Tax Plan, Kate and Dan will pay $5,295 less tax for 2021-22 when compared to 2017-18 tax settings.
Kath and Marilyn are a retired couple who live together and are both Age Pension recipients. Kath and Marilyn will each receive a one-off cost of living payment of $250, so their household will receive $500 in April 2022. Their combined pension will also be more than $390 higher over the next six months, before it is increased again.
Viv is a teacher and commutes to the classroom with her small petrol hatchback. On average she needs to fill her tank of 40 litres once every week. Under the changes, Viv would be expected to save up to $10 in excise and GST per tank of fuel or up to $250 over the 6 month period.