Six million Australians to get $250 cost of living payment from tomorrow

It was always designed to hit voters’ bank accounts in the midst of the election campaign, and now cost-of-living relief will be paid out to Australians within days.

It was always designed to hit voters’ bank accounts in the midst of the election campaign, and now cost-of-living relief will be paid out to Australians within days.

Six million eligible Australian low income earners are set to secure the government’s $250 cost-of-living payment this week, with just 25 days to go before the election.

The tax-free payments were announced in the budget by Treasurer Josh Frydenberg and will be delivered to eligible welfare recipients, veterans, pensioners and concession card holders.

“Today the first batch of the Coalition’s $250 cost of living payments will begin hitting the bank accounts of millions of eligible Australian pensioners, income support recipients, veterans and concession card holders,’’ the Treasurer said.

Treasurer Josh Frydenberg kicks a footy after giving a media conference at Whitten Oval. Picture: NCA NewsWire / Luis Enrique Ascui

“This comes on top of the halving of fuel excise, which has seen fuel prices come down from above $2 per litre to around $1.70 nationally today.”

“Under our cost of living package, more than 10 million Australians will also benefit from a new one‐off $420 cost of living tax offset. Combined with our previously legislated tax cuts, low and middle income earners will now benefit by up to $1,500 and couples up to $3,000 from 1 July this year.”

The Treasurer has been ramping up a scare campaign about Labor and tax increases in recent days, pledging there will be no new taxes if he is re-elected.

“At this election, Labor won’t tell Australians which taxes they will increase until after the election,’’ he said.

Six million eligible Australian low income earners are set to secure the government’s $250 cost-of-living payment this week

“What is clear though is that if Labor is elected, Australians will face higher taxes. The Shadow Treasurer has already declared that the Coalition’s tax cap “does not fulfil any useful economic purpose” and that he will “maintain flexibility” when it comes to taxes on ordinary Australians.”

Despite the “no new taxes” pledge, petrol taxes are set to rise in September when the temporary reduction to petrol excise is removed.

The Low and Middle Income Tax Offset is also being phased out for wage earners which means taxes will rise for around 10 million of those workers too.

But the good news on cost of living relief for some will arrive within days.

Recipients will receive an email to confirm that the payment has been made from April 27, with payments expected to be made by the end of the week totalling $1.5 billion.

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

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.

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.”