Federal Budget 2022: Quick 5-minute guide, how it affects you

Tax, health, education, welfare, petrol and more. Find out what the Federal Budget means for you and your family.

With the 2022 Federal Election fast approaching the budget is working hard to provide something for everyone.

Singles and families, small businesses and job seekers, young people and retirees will all find some level of relief.

Tax, health, education, welfare, petrol and more are all targeted as the election looms. Find out what the Federal Budget means for you and your family.

Tax cuts

$40 billion in personal income tax relief since start of pandemic

* New one-off $420 cost of living tax offset for more than 10 million low-and-middle income earners. Individuals already receiving the low and middle income tax offset will now receive up to $1500 and couples up to $3000 from July 1 this year.

* A one-off, income tax-exempt payment of $250 for all eligible pensioners, welfare recipients, veterans and eligible concession card holders.

Tax cuts aim to put more money in your pocket as the cost of living soars.

Cost of living

* $525m over four years from 2022-23 to reduce the Pharmaceutical Benefits Scheme Safety Net thresholds. This means people will need fewer scripts before they are eligible for free or further discounted medicines.

* Fuel excise to be cut in half for six months, with estimated savings of 22c a litre for motorists. Families with two cars are expected to save $700 in six months. Fuel retailers will be monitored to ensure savings are passed to motorists.

* Introduction of a one-off $250 cost of living payment for pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders.

* The Home Guarantee Scheme will be doubled to 50,000 places per year. First home buyers will only need a 5 per cent deposit to buy.

Bills are skyrocketing due to international and local pressures. Picture: iStock

Family and education

* $346.1 million over five years to introduce an enhanced Paid Parental Leave scheme for eligible working families by integrating Dad and Partner Pay and Parental Leave Pay to provide access to up to 20 weeks leave.

* This means, eligible single parents will be able to access an additional two weeks of Paid Parental Leave and also benefit from the household income threshold test.

* $19.4 million to establish up to 20 child care services in areas where there is an absence or limited supply of child care.

* About $19m will be spent teaching Aussie kids respect in the classroom, while a national survey will be undertaken asking students about their views on consent.

Education continues to be a focus of the budget following years of pandemic homeschooling.

Aged care

* $468m over five years to continue implementing recommendations from the Royal Commission into Aged Care Quality and Safety.

* $5.4m in 2022-23 to continue consultation on the design of the wider aged care reforms.

* $345.7m for embedding pharmacy services within residential aged care facilities to improve medication management for the elderly will receive $345.7m over four years from 2022-23.

* $32.8m Student clinical placements in the aged care sector to get $32.8m.

* $458.1m will be provided to support older Australians in the aged care sector with managing the impacts of Covid-19. Funding will focus on initiatives to prevent outbreaks in aged care facilities, vaccination delivery programs and availability of masks and rapid antigen tests.

A number of measures will focus on the aged care sector.

Health

* $525 million to slash medicine prices for 2.4 million pensioners, who will need to buy 12 fewer scripts before qualifying for the safety net under a measure to ease the cost of living.

* Nearly 600 women with rare triple negative breast cancer will benefit from a subsidy for a breakthrough $80,000 treatment Trodelvy.

* Patients in the bush will find it easier to have an MRI scan with more imaging machines licensed for Medicare rebates from November.

* And a series of mass advertising campaigns will be rolled out to encourage Australians to front up for regular health checks they put off during Covid.

Jobs and workers

* $2.8b to increase take up and completion rates in trade apprenticeships. Funding will include $5000 payments to new apprentices and up to $15,000 in wage subsidies for employers who take them on.

* $3.7b to create 800,000 training places to ensure businesses get the skilled workers they need.

* New and expanded programs to help disadvantaged youth, indigenous Australians, and people with a disability find employment.

The budget aims to get more people into trade apprenticeships.

Homeowners

* More than doubling the Home Guarantee Scheme to 50,000 places per year.

* Single parents only need a deposit as low as 2 per cent to buy a home

* First home buyers need a deposit as low as 5 per cent to buy a home

Small business

* For every $100 a small business spends on training their employees, they will get a $120 tax deduction.

* For every $100 small businesses spend on digital technologies (like cloud computing, eInvoicing, cyber security and web design) will see them get a $120 tax deduction.

* Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

Small businesses can access a range of measures designed to fuel the economy.

Covid-19 recovery

* $6 billion for preparations for winter and new variants of Covid-19. The Winter Response Plan outlines Australia’s national approach to managing Covid-19, influenza and other respiratory diseases.

* $1 billion to extend the Covid-19 vaccine rollout program.

* $546 million to extend Medicare Benefits Schedule (MBS) pathology items for testing

and detection of Covid-19.

National security

* $170m for federal police and border force to fight organised crime. New strike forces will target bikies and other criminal cartels smuggling weapons and drugs into Australia.

* $10b to establish a new cybersecurity force which will create 1900 jobs. The move will give Australia the ability to better defend against cyberattacks and launch its own if necessary.

Cybersecurity will be a huge focus, with billions of dollars earmarked to beef-up Australia’s ability to deal with attacks.

Infrastructure

* More than $500m for local councils to deliver priority projects and $880m to better connect regional Australia with ports, airports and other transport hubs.

* New railway and road projects will include faster rail for Brisbane to Sunshine Coast and Sydney to Newcastle corridors, the METRONET project in Western Australia, the North-South Corridor in South Australia, the Great Eastern Drive in Tasmania, the Central Australian Tourism Roads in the Northern Territory, and the Melbourne Intermodal Terminals to increase the efficiency of the national freight network.

Manufacturing

* New funding to make Victoria the first place in the southern hemisphere to manufacture

Moderna mRNA vaccines.

* Further $328.3 million invested in the Modern Manufacturing Strategy

Manufacturing and infrastructure remain key ways to create jobs and fuel economic recovery.

Women

* $1.3bn to tackle violence against women and children, including funding a national consent campaign.

* $38.6m to get more women into trades.

Mental health

This Budget invests a further $547 million in mental health services including:

* More Headspace services, community-based treatment centres and digital mental

health support.

* Regional initiatives to support our goal of zero suicides

Superannuation

The Government has extended the 50 per cent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.

The minimum drawdown requirements determine the minimum amount of a pension that a retiree has to draw from their superannuation in order to qualify for tax concessions. Given ongoing volatility, this change will allow retirees to avoid selling assets in order to satisfy the minimum drawdown requirements.

This measure is estimated to decrease receipts by $50 million and increase payments by $2.8 million over the forward estimates period.

Environment

* $247m to support investment in low emissions technologies.

* $148m to develop microgrid solar and wind energy projects.

Continued investment in alternative energy sources is a key part of the budget’s environmental strategy. Picture: Getty Images

Welfare

* $450m to respond to emergencies, including flood relief payments and pandemic leave.

* $6.1m to assist job seekers with a disability.

Tourism

The government will provide $146.5 million over three years from 2021-22 to support the recovery of the Australian tourism sector as part of the Government’s response to the Covid-19 pandemic. Funding includes:

* $76.7 million over 2 years from 2021-22 to extend the Covid-19 Consumer Travel Support Program to support travel agents and tour arrangement service providers

* $63 million over 3 years from 2021-22 to accelerate international tourist and backpacker arrivals through targeted marketing initiatives

* $6.8 million over 3 years from 2021-22 for increased data availability and analysis to improve planning in the tourism sector and to establish an employment platform to promote career opportunities in the sector.

Originally published as Federal Budget 2022: Quick 5-minute guide, how it affects you