Helping households with the cost of living

Supporting those most in need

The Government is investing $1.1 billion to create a new Supplementary Allowance for income support recipients on eligible payments to help them meet the costs of essential bills.

The Supplementary Allowance will assist Australians who are hardest hit by the increases in costs of living — the unemployed, students, and parents with young children.

Australians receiving Newstart Allowance, Youth Allowance and Parenting Payment, among others, will qualify for the Supplementary Allowance.

Singles will receive an additional yearly allowance of $210, and couples will receive $350, paid in two

instalments in March and September, with the first payment to commence on March 2013.

Supporting redundant workers

In addition to the package, the Government is doubling the liquid assets test thresholds for income support recipients. From 1 July 2013, newly unemployed people can access income support without waiting up to 13 weeks if they have liquid assets of up to $5,000 for singles without children and $10,000 for all others.

This allows people to be more financially secure, by retaining modest levels of savings, while being able to access income support.

Tripling the tax–free threshold

These measures build on the $47 billion of tax cuts we have delivered since 2007–08, and the $8 billion tax reform package to be delivered over the next three years.

In 2012–13, people will pay less income tax due to the tripling of the tax–free threshold from $6,000 to $18,200. All taxpayers with incomes of up to $80,000 will get a tax cut, with most receiving at least $300 a year with many part time workers receiving up to $600. The tax–free threshold will further rise to $19,400 in 2015–16.

Regular wage earners below these thresholds will get to take home all of their pay and by 2016 over a million people need no longer lodge tax returns.