A $250 cash boost is on the way for pensions as part of an effort from the Federal Government to help combat the rising cost of living.
Treasurer Josh Frydenberg is expected to announce the one-off cash payment on Tuesday’s, March 29, Federal Budget.
It is understood the one-off cash bonus scheme was limited to $25o as a way to offer some relief from the rising costs of living, while simultaneously not adding any pressure on inflation and interest rates, so as to avoid making the cost of living worse.
News of the payment comes after Frydenberg told reporters on Thursday, March 24, that this week’s Budget will help Australians pay for the rising cost of living as petrol and grocery prices continue to skyrocket.
“Obviously, it’s been a very trying time for Australians with the pandemic of course and that’s put pressure on the Budget,” he said.
“But this Budget is all about easing the cost of living for families now.”
Frydenberg also noted that the relief bonus is intended to be a “temporary” measure to address “the challenge we face.”
— Australian Treasury (@Treasury_AU) March 28, 2022
Although approximately 2.6 million people received the age pension, according to the latest data from the Australian Institute of Health and Welfare, it’s still unclear whether the payment will also be applicable for those on the part-pension.
Earlier this month, the Coalition announced an additional $20 per fortnight boost for pension payments to help cover rising living costs.
Minister for Families and Social Services Anne Ruston said the increase was “the largest increase since 2013.”
“Pensioners will see a 2.1 per cent increase to their payments,” she said.
“This is putting money in the pockets of all Australians who rely on our social security system and, in particular, older Australians.
“It gives us a higher weighting to fuel and transport costs in recognition of their significance to pensioners, which helps ensure the rate of the age pension maintains senior Australians’ purchasing power in the economy,” she said.
This year’s budget is also expected to include a temporary tax cut in the 44.2 cents per litre fuel excise.
According to 7News payments are expected to hit Australian bank accounts within the weeks, as the Federal election looms, with the bonuses being paid through government programmes and agencies like the Australian Tax Office and Services Australia.