Expert Opinion Panel
Jason Bryce – Business & Finance Specialist
Parental Leave increased
Home loan scheme doubled
Everything single parents need to know about the new $250 cash payment:
Who gets it?
When do you get it?
Can you get more than one $250 payment?
Scott Morrison is tipped to call an election within days and it will probably be held on Saturday 7th or 14th of May
You can tell an election is coming because last night’s budget contains one-off cash handouts, big changes to paid parental leave for single parents and extra benefits for families.
By Jason Bryce
War in Europe is pushing up the cost of living on ordinary Australian families, the treasurer Josh Frydenberg told parliament last night, so immediate cash relief is being handed out to millions of Australians.
“Tonight, the Morrison government announces a new temporary, targeted and responsible cost-of-living package to ease these pressures,” said Mr Frydeneberg
“Practical measures that will make a difference.”
The opposition leader Anthony Albanese said one-off payments are fine but there’s a need for permanent cost-of-living relief.
Albo told ABC Radio that Labor is likely to support all the cost-of-living measures in the budget.
“We’re unlikely to say, ‘No, don’t give people a one-off payment.”
“We’ll point out that it’s probably timed for the election,” said Labor’s leader Anthony Albanese.
So, enjoy some pre-election relief from the politicians as they get ready for the serious campaigning coming your way very soon.
Who will get the $250 payment to Centrelink recipients?
Single parents are likely to get a one-off $250 payment that was announced by the treasurer last night. This payment will flow to six million people getting Centrelink payments or holding a concession or seniors card. However, not everyone will get it.
The full list of eligible payment types is below. If you get one of these payments from Centrelink, you will get the $250 one-off cash bonus. If you get more than one of these payments, you will still just get the one $250 bonus. You can’t get two or more bonus $250 payments:
- Parenting Payment
- Disability Support Pension
- Carer Payment
- Carer Allowance (if not in receipt of a primary income support payment)
- Jobseeker Payment
- Youth Allowance
- Austudy and Abstudy Living Allowance
- Double Orphan Pension
- Age Pension
- Special Benefit
- Farm Household Allowance
- Pensioner Concession Card (PCC) holders
- Commonwealth Seniors Health Card holders
- Eligible Veterans’ Affairs payment recipients and Veteran Gold card holders
When do we get the $250 one-off payment?
Centrelink will pay the one-off $250 cash bonus payment automatically in April 2022. The government has not given any specific date but is likely to be ont eh second half od the month.
You don’t need to apply for it. It will be paid to the account that usually receives your payments.
The $250 bonus payments will not be ‘taxable income’ and will not count as “income support.”
You don’t have to apply or do anything to get it if you’re eligible.
More paid parental leave for single mums
This is an important change for working single mums.
Right now, the main carer (usually mum) can get 18 weeks paid parental leave and the secondary carer can get two weeks.
Soon, that will change to a total of twenty weeks for both parents, to be split between them as they see fit.
And, for the first time, single parents can claim the whole twenty weeks for themselves. How much is paid parental leave? It’s $772.55 per week or $154.51 per day and you get it paid via your employer, who gets it from the government.
To get paid parental leave you have to have been in a job for not less than 10 of the previous 13 months prior to the birth (or adoption) of the child and have worked at least one day per week (330 hours over the 10-month period).
“Families, not government, are best placed to decide what works for them,” said Josh Frydenberg.
Pretty much every parent will be eligible for this as the income cap is rising to $350,000 per year (for the whole household).
Josh Frydenberg said this was to “provide working families with full flexibility and greater choice.”
How much will the petrol tax cut save me?
Fuel excise has been cut in half for the next six months only.
That means you’ll see a drop in petrol prices within the next two weeks that will save you about 22 cents per litre every time you fill up the car.
For an average family car with a petrol tank holding 60 litres that means a saving of about $13.20.
A tank of petrol that cost $120 at $2 per litre will now cost $106.80.
This measure came into effect at midnight last night and will take up to two weeks to flow through to the price you pay at the pump. The fuel tax relief ends on 28 September 2022, so expect prices to rise again in early October.
$420 tax-offset boost for low-middle income earners
Ten million working Aussies will see their existing tax offset of $1080 increased to $1500 when they do their tax return after 30 June this year. If you are one of the 4.8 million people earning between $48,000 and $90,000 you’ll get maximum tax refund of $1,500. The tax refund tapers down to $420 for those earning up to $126,000. So, if you are working it’s well worth getting your tax done as soon as possible.
Home deposit scheme for single parents expanded
The number of single parents who will become eligible for the Home Guarantee Scheme will double.
The scheme guarantees part of the loan, allowing home buyers to enter the market with a smaller deposit. For single parents as low as two per cent of the value of the property.
So, if you have an income that might support a mortgage and you have your eye on a nice home on the market for, say, $500,000, you might be able to buy it if you can save $10,000 (plus a bit extra for legals and fees).
The Indigenous Business Australia’s Indigenous Home Ownership Program (IHOP) will be extended by two years to 2024–25
This scheme offers concessional loans, so get in touch with Indigenous Business Australia to find out if you might be able to buy a home.
Jason is an expert business, finance and consumer issues journalist specialising in personal finance, debt, consumer issues and banking, Jason is now based in Melbourne and works as a journalist . Previously Jason has worked for ABC TV, News Ltd and plenty of magazines and online publishers. You can keep up to date with the latest Centrelink news and information at Jason’s Facebook page, Centrelink News or his website www.jasonbryce.com.au.
Jason is a proud single dad of three children. Follow Jason on Twitter @JasonBryce.