Yahoo Finance Updated: Budget 2022 - Everything we know so far
The Federal Budget will be delivered on March 29 amid COVID-19 recovery efforts, flooding in NSW and Queensland and a war in Europe.
Treasurer Josh Frydenberg said this Budget would be focused on easing cost-of-living pressures - an issue taking hold around the world.
And, while we won’t know exactly what will be in the Budget until it is released at 7:30pm AEDT next Tuesday, some announcements have already been made about what we can expect.
Also read: What tax changes to expect - for you and your business
Also read: Australia's $6 billion shopping list: 5 issues the 2022 Budget must tackle
Also read: Frydenberg grilled over $16 billion mystery spending plan
This is everything you need to know.
Debt and deficit
The Budget deficit, meaning how much money the Government would need to afford everything it needs to do, is expected to be around $70 billion.
Now while that may seem like a lot, it could be worse. In the mid-year budget review it was predicted the deficit would be $98.9 billion.
Government debt is expected to be around $1 trillion.
A large portion of this is due to the vast amount of government spending to support the economy throughout rolling COVID-19 lockdowns and border closures.
Fuel prices
Pressure at the fuel pump could be eased slightly if the Government follows through on an expected temporary slash to the fuel excise.
But Finance Minister Simon Birmingham remained tight-lipped about exactly how much the excise would be cut.
One-off payments
The Federal Government will announce a one-off cash payment of $250 to pensioners and low-income earners in tomorrow’s Budget.
The cash boost is part of the Government’s attempt to offset the rising cost of living, with many Aussies feeling the pinch in the grocery store and at the petrol pump.
Housing affordability
Tuesday night's Budget will also include more help for first-home buyers.
The Home Guarantee Scheme will double to 50,000 places to support more first-home buyers with a 5 per cent deposit.
There will be an additional 35,000 places available for first-home buyers, 5,000 places for single parents and 10,000 places for people who buy or build a new home in a regional area.
Taxes
It is widely accepted that the Government will extend the low to middle income tax offset (LMITO) for another year.
The LMITO means those making between $18,200 and $87,000 will not be charged taxes on an additional $1,080 worth of income.
It is not a tax cut, it just means you will not be charged tax on a further $1,080 of your income.
It is also expected the Government will not bring forward tax cuts for higher-income earners.
Part of the Government's plans, set out in previous years, was to end the LMITO and create a new tax-bracket system in which everyone who had an annual income between $45,000 and $200,000 would be taxed the same amount - 30 per cent.
Centrelink payments
Pension and welfare payments rose on March 20, benefiting 4.9 million people and costing the budget $2.2 billion extra over the year.
Singles received $20.10 more per fortnight, while couples got a $30.20 boost per fortnight.
Environment
It is no wonder after the 2020 bushfires, and now the devastating flooding in New South Wales and Queensland, that environmental concerns are a big talking point this year.
Around $800 million will be provided over 10 years for strategic and scientific research and exploration of Antarctica.
While that may seem like an odd decision - Prime Minister Scott Morrison said the plan was to fend off a growing Chinese influence in the area.
So, while not necessarily about the environment, scientific study will still be occurring there.
Another $86 million has been pledged to support the forestry industry in Tasmania.
The Government also announced a $128.5 million reform package to provide greater certainty around environmental protection and streamline assessments.
Defence
Defence spending is expected to make up around 2.1 per cent of GDP.
Morrison pledged $10 billion over two decades for a submarine base on the east coast of Australia.
A further $4.3 billion will go towards building a new dry dock facility in Western Australia and $282 million in the Northern Territory for 34 capability projects.
Australia has also launched a $7 billion space force project.
Infrastructure
A number of infrastructure spends have been announced, including:
$500 million for Urannah Dam in central Queensland
$678 million for the sealing of 1,000km of the Outback Way
$2.26 billion for Adelaide's North-South corridor motorway
$40 million for bridges
$74 million top-up for Perth city deal
$480 million to increase NBN speeds in rural Australia
Health
Medicare is expected to cost around $126 billion over four-year forward estimates.
The Government also announced $61.2 million for the Australian Genomic Cancer Medical Centre to research and develop drugs for people with advanced cancers.
Education
Independent schools will receive $6.4 billion, which will grow to $8.5 billion by 2029.
$1.2 billion over four years will be expanded to transition-to-work employment services and disadvantaged youth.
Tourism
The Government will have a focus on enticing international students to return after COVID-19 restrictions.
The Morrison Government announced a $60 million tourism investment, with $45 million over two years for Tourism Australia to focus on regional destinations impacted heavily by the loss of international tourists.
- With AAP
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