Abstract

The 2022 Federal Budget included several measures designed to provide ‘cost of living’ relief for Australian households. These measures include a $420 ‘cost of living offset’ for low and middle income earners, and a $250 cost of living payment for welfare recipients and concession card holders, and a halving of petrol and diesel excise.

The government suggests households are facing cost of living pressures as a result of the pandemic, the invasion of Ukraine and extreme weather events. The approach by the government is said to be temporary and targeted. This research note estimates which household income groups benefit the most from the package.

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