This blog summarises the initiative contained in the 2022 Federal Budget announced on 29 March 2022.
Budget initiatives that might affect you
Extended the home loan guarantee scheme
The
First Home Loan Deposit Scheme (FHLDS) allows borrowers to borrow more than 80% of a property’s value whilst avoiding the cost of lenders mortgage insurance (LMI), because the government guarantees part of the loan. The government has announced it will increase the number of places from 20,000 to 50,000 per year. 10,000 of these places are reserved for regional home buyers and 5,000 for single parents.
Cut the cost of petrol and diesel by 24 cents per litre
Effective immediately, the fuel excise (which is currently 44.2 cents per litre) will be cut by half for 6 months i.e. until the end of September. As excise also attracts GST, the saving per litre will be a little over 24 cents. This is estimated to save drivers between $10 and $20 per tank.
Excise is charged when fuel is deposited into petrol retailers’ tanks (at the service station). Therefore, this saving will not flow through to consumers until fuel stocks are replenished, which should occur over the next couple of weeks.
A tax refund of up to $420 when you lodge your tax return after 1 July 2022
If you earn less than $126,000, you would have been entitled to the
Low and middle income tax offset (LMITO) since the 2018/19 financial year. The maximum tax offset used to be $1,080 if you earned $90,000. For this financial year ending 30 June 2022, the maximum LMITO will be increase by $420 to $1,500. If you earn close to $90,000, your tax return will be $420 more when you lodge your 2021/22 tax return.
One-off payment to pensioners
Next month, the government will make a one-off, tax-exempt payment of $250 to eligible pensioners, welfare recipients, veterans, and eligible concession card holders.
Work-related RAT tests are tax-deductible
The cost to purchase Rapid Antigen Tests for work-related purposes are
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