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Budget 2022: New details emerge on $250 cash payment

Budget 2022: A person removing $100 notes from a wallet.
A cash boost of $250 is expected to be announced in the Federal Budget.

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.

It was previously reported the payments would be between $200 and $400, but it’s now thought it will be capped at $250.

Services Australia is expected to hand out the payment within weeks.

The cash bonus is expected to only go to pensioners and other low-income families that rely on income support, according to reports from news.com.au.

Centrelink boost

This comes after confirmation that recipients of Centrelink will receive an increase to their payments.

The boost means a $20.10 fortnightly increase for individuals to $987.60 and a $30.20 increase for couples combined at $1,488.80.

Asset-test limits will also be stretched to allow more people to access a part pension, with the cap rising by $6,750 to $599,750 for single homeowners.

Homeowner couples will see a $10,000 rise to the asset cap to $901,500.

Almost 5 million Australians will benefit from the three rising payments.

Rising cost of living

During 2021, Australia’s inflation rate picked up sharply.

From 2017 through to the start of 2021, the annual rate of inflation averaged just 1.5 per cent, which was one of the longest periods of low inflation in Australia’s history.

However, in the June quarter of 2021, inflation spiked to 3.8 per cent and it ended 2021 at 3.5 per cent.

There have been calls to raise the disability support pension by $100 per fortnight to improve living stands, with the soon-to-be $987.60 payment still well below the national minimum wage of $1,545 per fortnight.

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