COST of living pressures - caused by skyrocketing fuel and grocery prices - were front and centre of locals’ minds, with some relief offered through Tuesday night’s Budget.

Cost of living pressures will be eased through a temporary cut to the fuel excise, a one-off cash payment for eligible welfare recipients, and a one-off tax offset for low- and middle-income earners. 

The Budget’s main expenditures included:

 •          A one-off Cost of Living Tax Offset - from 1 July this year, more than 10 million individuals will receive a one-off $420 cost of living tax offset. As a result, eligible low- and middle-income earners will be up to $1500 better off for a single income household, or $3000 better off for a dual income household.  

•           A one-off Cost of Living Payment - a one-off, income-tax-exempt payment of $250 to six million eligible pensioners, welfare recipients, veterans, and eligible concession card holders in April 2022.

•           A temporary fuel excise relief - the fuel excise has been reduced by 50 per cent for six months. Excise on petrol and diesel was cut from 44.2 cents per litre to 22.1 cents per litre which will flow equate to lower petrol prices over the next two weeks, as petrol stations replenish their stocks.

The government also announced measures to expand and upskill the workforce, to secure workers needed now and for the future, to help people transition into more highly skilled and better paying jobs. These include:

•           Transforming Australia’s manufacturing sector, and building resilient supply chains with over $1 billion in new investment, building on the $1.5 billion Modern Manufacturing Strategy announced in the 2020-21 Budget.

•           Committing $2.8 billion to support Australian apprenticeships, building on the $13.3 billion spent on apprenticeships and traineeships since 2013.

•           Committing $3.7 billion in Commonwealth funding for a new skills agreement, which has the capacity to deliver up to 800,000 additional training places for Australians.

•           Developing the next generation of innovative Australian companies, the Budget included $2.2 billion for a research commercialisation action plan (including $1.6 billion for a new economic accelerator) to bring industries and universities together.

Benefits for small businesses include:

•           Small businesses will have access to a new 20 per cent bonus deduction for eligible external training courses for upskilling employees.

•           The Skills and Training Boost will apply to expenditure incurred from Budget night until June 30, 2024, providing $550 million in tax relief.

•           The government is also providing $1 billion for a new Technology Investment Boost to encourage small businesses to go digital.

•           Small businesses will be able to deduct a bonus 20 per cent of the cost of expenses and depreciating assets that support digital uptake. 

•           Expenditure of up to $100,000 per year will be supported by this new measure, which applies from Budget night until June 30, 2023.

While the global economy endures ongoing and significant challenges from the pandemic, and the war in Ukraine, Wannon MP Dan Tehan said that Australia’s economic recovery was leading the world.

“More Australians are in work than ever before and the unemployment rate is now forecast to reach 3.75 per cent in 2022, the lowest rate in close to 50 years,” Mr Tehan said.

“The government is introducing a new temporary, targeted and responsible cost of living package to take the pressure off household budgets.”

Mr Tehan also said infrastructure projects have been given a boost with government investment of “an unprecedented $37.9 billion in regional Australia and priority infrastructure across the nation to create jobs and unlock the economic potential in our regions, including vital local projects such as Prince Highway West upgrades, Warrnambool Rail Line upgrade and Dairy Supply Chain Roads”.

The government also prioritised keeping Australians safe due to living in a time of uncertainty. 

 Upgrades to defence include:

•           Increase the Australian Defence Force by up to 18,500 by 2040.

•           Provide $9.9 billion over 10 years to significantly enhance Australia’s offensive and defensive cyber and intelligence capabilities.

•           Support households and businesses impacted by recent floods in parts of Queensland and New South Wales, with over $6 billion expected to be spent. 

Budget documents are available at budget.gov.au.