Millions of Australians to see $250 bonus in days

Millions of Australians can expect $250 to hit their bank account this week as a part of the government’s plan to reduce rising cost-of-living pressures.

Six million eligible Australians are set to see the government’s $250 cost-of-living payment hit their bank accounts within days.

The tax-free payments were announced by federal Treasurer Josh Frydenberg in the 2022 Budget for welfare recipients, veterans, pensioners and concession card holders

Services Australia said the payments will automatically start from April 28, subject to legislation, and recipients will receive an email to confirm that the payment has been made.

Eligible Australians should see the payment in their bank accounts within days. Picture: iStock

The $250 pre-election sweetener was just one of the measures announced in the 2022 Budget which aimed to relieve rising cost-of-living pressures due to the war in Ukraine, rising commodity prices, and supply chain issues caused by Covid-19.

“Events abroad are pushing up the cost of living at home,” Mr Frydenberg said in his budget speech.

“Higher fuel, food and shipping costs are increasing inflation and stretching household budgets.

“This budget’s new cost of living package is responsible and targeted, delivering cheaper fuel, cheaper medicines and putting more money in the pockets of millions of Australians.”

Treasurer Josh Frydenberg made the announcement while delivering the 2022 Budget. Picture: NCA NewsWire / Gary Ramage

Other measures included in the $8.6bn package include a turbocharged low and middle income tax offset (LMITO), nicknamed the “lamington” offset, which will impact more than 10 million Australians who earn less than $126,000 a year.

The one-off $420 tax offset will be applied in addition to the existing $1080 LMITO from July 1 once Australians begin filing their tax returns. Individuals could receive up to $1500 in tax relief, with couples able to receive up to $3000.

The 22-cent fuel excise has also come into effect, saving motorists around $700 over six months, the government predicted.

“For the next six months, Australians will save 22 cents a litre every time they fill up their car,” Mr Frydenberg said.

“A family with two cars who fill up once a week could save around $30 a week or around $700 over the next six months. Whether you’re dropping the kids at school, driving to and from work or visiting family and friends, it will cost less. The competition watchdog will monitor retailers to make sure these savings are passed on in full.”