Worried about the rising cost of living? You’re not alone!
Russia’s invasion of Ukraine is putting a strain on global energy sources, contributing to a rise in the cost of living globally. Aussies are feeling the pain of rising petrol prices, but experts have warned that we can also expect to also see a rise in the costs of heating, cooling, power, and transport. The increasing price of essentials such as food and petrol is causing strain on families alongside stagnant wage growth.
- Petrol prices over $2 per litre are causing pressure on households and businesses, but could also impact Australian tourism.
- Head of Qantas Alan Joyce has warned that ticket prices would need to increase approximately 7 per cent if oil prices remain at $US120 per barrel.
- David Parnham has warned that by the end of 2022, we will be paying up to $7 for a regular coffee as cafes nationwide struggle to absorb rising overhead costs.
So how is the government stepping in to support Aussies during this difficult period?
On March 29, Josh Fryenberg announced his plans in the 2022 Federal Budget. To combat the rising cost of living, a one-off $420 cost of living tax offset will be provided to more than 10 million low and middle-income earners. Those who already receive the offset will receive up to $1,500 (or up to $3,000 for couples) in their 2021-22 tax returns. A $250 cost of living payment will be made to pensioners, welfare recipients, veterans and concession cardholders. Also, a cut to fuel excise for the next six months, with an expected saving of $300 for the average household. Click here to learn more about how Federal Budget announcements may affect your family.
If you’re after some more tips and tricks to help you manage your money better during this time, our team has a few articles that may be useful: