The feral budget version of the Federal Budget: You got richer last night (but try not to feel filthy)
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I don’t want to big note myself – after all, this Federal Budget’s not only just about me – but my word, I was spot on about it yesterday.
So rather than re-write that stunningly precognitive essay-list of all Frydo’s tweaks and tricks, I suggest you head over and read Stockhead’s major resource on resources, Josh Chiat’s stunning evocation of Truman Capote and Hunter S. Thompson but from a fiscally-aware, West Aussie resource rich P.O.V.
On this page, alas, we’re gonna do the budget version of Budget 2022: The bargain brass tacks version.
Right. So. Does it matter that there’s cash handouts ahead of an election? I say hell no. But that’s well above my lower-to-middle-income tax thingy (LMITO) pay grade.
What we do know is a stupendously fortunate budget windfall has given the government the opportunity to both spend more and cut the deficit – what AMP Capital’s Dr Shane Oliver calls “a magic election pudding”.
The 2022-23 budget deficit is expected to be $78bn, down from the $100bn forecast back in December, thanks to a budget boosted by faster growth, more jobs and higher commodity prices which fills the Treasury coffers with stronger tax collections and lower welfare spending.
As presaged by Stockhead – about 10 million battling wee Aussies pulling in under $126,000 are set to pocket a few hundred dollar-bucks of bonus tax relief.
We thought it would come in the form of a replacement for the Lamington, but heeding our advice, it looks like the Lamington not only stays, it gets bigger.
So with Stockhead’s in-house certified accountant up all night crunching the numbers, we can confirm Aussie workers already up for the Lamington the will now be in line for a freshly engorged chocolate-dipped cube of spongy, hearty goodness worth up to $1500 while couples will receive (checks figures) as much as $3000.
Sam says that Lammo’s in the post, after you’ve lodged your tax return for this year.
There’s funnier stuff on Twitter, but they made the effort, so:
Fuel excise will be cut in half. For the next 6 months, Australians will save 22 cents a litre every time they fill up their car.
A family with 2 cars who fill up once a week could save around $30 a week or around $700 over the next 6 months. pic.twitter.com/EVZUo8KArP
— Josh Frydenberg (@JoshFrydenberg) March 29, 2022
Yes, the government is cleaving-in-twain the fuel excise for the next six months. The hope here is voters with a car will pocket 22 cents for every litre they spend at the bowser.
Sam says the cut will save a family with two cars about $30 a week, or (refers to notes…) $700 over the next six months, if they fill up once a week.
That starts today, Wednesday, although the flow through won’t arrive in petrol-land for a few weeks.
A one-off, tax-free, two-fitty ($250) cash payment is also in the post for next month to help income-support recipients get on with the cost of living.
It’s no Lammo, but it is sweet and it does arrive in the account of your nominated bank a few weeks before the federal election.
The Treasurer says that’s good for about six million more Australians – covering those on JobSeeker, aged pension, disability support pensions, parenting and youth allowance and for those fortunate to be touting a seniors health card.
This one was telegraphed yesterday, with 35,000 extra spots laid out for first-home buyers under an expansion of the existing First Home Guarantee scheme.
This is where the government underwrites ‘firsties’ mortgages so they can build a new home with only a 5% deposit, which HIA managing director Graham Wolfe says is the biggest barrier to home ownership.
The Family Home Guarantee will offer government loan guarantees to a further 5000 single parents so they can buy a home laying out only a 2% deposit.
Also good to go, now regional house prices are going burko too – the Regional Home Guarantee.
This one gives 10,000 loan guarantees to anyone who’s not owned a home for five years. The rider is to buy a new place outside a major city with just a 5% deposit.
There’s more but I’ve lost interest.