logo
Centrelink boost for 900,000 Aussies in federal budget leak

Centrelink boost for 900,000 Aussies in federal budget leak

Yahoo18-03-2025
Deeming rates will remain frozen for another year, in a major win for the thousands of pensioners and other welfare recipients. Early leaks of next week's federal budget reveal that Social Services Minister Amanda Rishworth will not lift rates for 900,000 Centrelink recipients.
Deeming rates are the rates of return the government assumes people earn on financial assets, including shares, superannuation and bank accounts. They impact means testing for Centrelink payments, including the Age Pension, JobSeeker and parenting payments.
Deeming rates are adjusted to reflect the official cash rate on July 1 each year.
However, on July 1, 2022, the government froze rates at 2.25 per cent for two years as a cost-of-living measure.
The government then extended this pause for another year in last year's federal budget.
RELATED
Centrelink change to see thousands more Aussies eligible for age pension
Tiny Aussie town offers $680,000 salary to attract one worker: 'More than just money'
Accountant's ATO warning after $20,000 tax refund is refused: 'Getting stricter'
Sources told The Australian Financial Review, the freeze would not be lifted in this month's budget, with the government wanting to avoid a major hit to welfare payments.
If rates were returned to their long-term levels in line with the cash rate, welfare recipients would be 'deemed' to earn more and have their payments cut.
Last year, for example, National Seniors modelling found single aged pensioners were about $3,300 better off a year after the government extended the freeze on increases to the deeming rate.For singles, the first $62,600 of your financial assets have a deemed rate of 0.25 per cent. Anything over $62,600 is deemed to earn 2.25 per cent.
For couples where at least one person gets a pension, the first $103,800 of your combined assets have a deemed rate of 0.25 per cent. Anything over $103,800 is deemed to earn 2.25 per cent.
There are 900,105 people who receive government welfare and who have income from other sources. That includes about 460,000 aged pensioners, 143,000 on JobSeeker payments and 120,000 on parenting payments.
Treasurer Jim Chalmers said Aussies struggling with the cost of living can expect more support in next week's pre-election budget.
But he didn't go as far as committing to an extension of the $300 energy rebate.
'What I can say is that there'll be more cost of living help in the budget, the form of that will be made clear to you and over the course of the next week or so,' he said.
'It will be meaningful and substantial, and it will be responsible.'
Centrelink payments including the Age Pension, JobSeeker, Disability Support Pension, Carer Payment and Parenting Payment will increase on March 20 with regular indexation.
The maximum single rate for the Age Pension will increase by $4.60 to $1,149 a fortnight, while the partnered rate will increase by $3.50 each to $866.10, or a combined $7 to $1,732.20 a fortnight.
A single person on JobSeeker will receive an extra $3.10 per fortnight, taking their total to $789.90 including the Energy Supplement.
Couples will receive an additional $2.80 per fortnight, which will take their fortnightly payment to $723, including the Energy Supplement.Sign in to access your portfolio
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Wild ATO deductions called out as expert exposes tax 'grey area'
Wild ATO deductions called out as expert exposes tax 'grey area'

Yahoo

time5 hours ago

  • Yahoo

Wild ATO deductions called out as expert exposes tax 'grey area'

Depending on your area of employment, there is a range of tax deductions that could be available. The basic rule is that if you've incurred an expense as part of your job, you can claim it. For instance, if you're a taxi driver, you can claim fuel for your car. If you're a tradie, you can likely claim a deduction for an array of essential tools. Such examples are relatively straightforward and obvious, but with tax being something of a grey area for many, it is inevitable that some of the claims tax specialists encounter aren't always of the typical variety. Here are some of the examples that H&R Block has encountered. RELATED ATO's urgent warning to tradies over 'growing' tax trend FIFO worker's huge compensation win after being unfairly sacked Tradie loses $449,000 in an instant after missing key detail TV star's op shop gifts Each time a certain high-profile television personality graced our screens, he bought a new suit. Once he'd worn each suit, he gave it away to a charity shop. Not only did he want to claim a tax deduction for the cost of each new suit (which he said he was obliged to wear to maintain his personal brand), he also wanted to claim a further tax deduction for the donation to charity. Sadly for him, the ATO doesn't allow deductions for the cost of conventional clothing, a category that includes business suits, even those purchased by TV stars. As for the donations — well, in theory, a donation to a charity is tax-deductible, but what is the value of a second-hand suit? Our dapper star couldn't say because he didn't have receipts from the charity, and without a receipt, there is no possible surgery and tax Still with the rich and famous, a well-known fashion model had undertaken various cosmetic procedures to maintain her appearance. She argued that the work done was to maintain her career past the point that it would otherwise have faded out if she hadn't had the work done. As such, she argued there was a clear link between the cosmetic surgery and deriving her income. It's an argument that seems superficially compelling, but it's not one the ATO would agree with. As far as they are concerned, medical procedures are rarely, if ever, tax-deductible, no matter what the reason. Taxable boob job? Taxpayers in the adult entertainment industry can claim all manner of interesting deductions. Taxpayers in the US — but not here — have even claimed that breast enhancements could be tax-deductible as a 'tool of the trade' (not an argument that would find favour here, following the same logic as the cosmetic surgery for the model, above). So, it's a controversial claim even for adult performers but the lady — with no known connection to the adult industry — who tried to claim that her enhancements were necessary for work was facing even more of an uphill battle. The claim wasn't allowed. Breast enhancements might be a tax no-no, but adult performers can look at successfully making claims for items as diverse as dance lessons, hair care, oils, lingerie, costumes and 'toys'. Work clothes that can be taxed Another profession that can generate some very strange tax deductions is a circus performer. Not many people can successfully make a claim for a clown costume, but one client who did was a professional clown. The whole costume was allowable, including the red nose, as a work-related clothing claim. Similarly, the professional sword swallower was able to claim the ceremonial swords used in his act. Deductions for pets? Can you claim a tax deduction for your dog? In very limited circumstances, yes you can, both for the cost of acquiring the animal (the cost is depreciated over several years) and for the costs of keeping it (food, vet bills, etc). The two most common scenarios where the cost of a dog is tax-deductible are farming (where an animal might be used to round up sheep, for instance) and security (where the cost of a guard dog to patrol business premises might be allowable). Other than that, forget it. So, for the taxpayer who tried to claim for their pet poodle, no deductions were allowed. Claiming the daily commute Lots of people try to claim for the cost of traveling from home to work and back again. Usually, they are unsuccessful because the daily commute is regarded as private — not work-related — travel and hence not claimable. The only exception is where you're required to carry bulky tools and equipment and you have nowhere secure at work to store them. That exception didn't apply to the hairdresser who tried to claim the daily commute because she had to transport her scissors and clippers, which might have been sharp but certainly weren't bulky. When you can claim on a caravan Caravanning is a popular leisure pursuit among the 'young at heart' but is it possible to claim your caravan as a tax deduction? Surprisingly, the answer might be yes. One taxpayer who travelled extensively for work decided to buy a caravan to provide overnight accommodation whilst working away, rather than paying for a hotel room every night. From a tax point of view, that stacks up to be deductible. But if you are in the same situation and also use the caravan for holidays, you'll need to apportion the deduction between work use and private use. People who can claim gym memberships A very limited number of taxpayers can claim gym memberships. Amongst those who can are professional sportspersons, some police officers and some defence force personnel. Bouncers aren't on the list, so for the bouncer who wanted to claim his martial arts course fees, no deduction was allowed. Garden feature on tax Do you own a rental property? In among the usual deductions — mortgage interest, rates, repairs, etc — did you know that you can claim for items that improve your property's 'street appeal'? Whether you think garden gnomes do that or not is really a matter of personal taste, but several clients have successfully claimed them in respect of their rental property. Here's a tip — make sure the gnomes are actually for your rental property; if they turn up in the garden of your family home, they are not deductible! Thinking of claiming these? Don't — they're not deductible! Personal grooming (hair, make-up, etc) Child care Gym memberships and other club memberships Cost of attending social functions Driver's licence Fines Glasses and contact lenses Rent, mortgage and other 'ownership' costs when working from home 'Conventional' clothing Business suits Retail staff in clothing outlets Home to work travel With the exception of where you are required to carry bulky tools Undertaking incidental work related tasks on the way to or from work (eg, collecting the mail) won't make the journey deductible! Medical expenses (IT 2217) eg, sleep apnea machines, hearing aids, wheelchairs, artificial limbs What can I claim? Depending on your job, you might be eligible to claim the following: Bags, briefcases, etc Conferences, seminars and training courses Fares Fees for tax advice/preparation First-aid courses by a designated first-aid person Insurance of work-related equipment Overtime meal expenses Parking fees (eg, if visiting clients) Professional association fee Personal protective equipment (masks, sanitiser, etc) Self-education expenses directly connected with current employment (includes fees, travel, books and equipment) Specialist publications (not newspapers) Sun protection (if you work outside) Stationery used for work-related purposes Technical and professional publications Travel, accommodation and meals when traveling for work Work-related clothing Work-related car useError in retrieving data Sign in to access your portfolio Error in retrieving data

British expat amazed by $2 Aussie roadside scene: 'Never seen anything like it'
British expat amazed by $2 Aussie roadside scene: 'Never seen anything like it'

Yahoo

time19 hours ago

  • Yahoo

British expat amazed by $2 Aussie roadside scene: 'Never seen anything like it'

A British expat who recently made a home for herself in Far North Queensland was stunned by a roadside feature that she now believes should be everywhere around the world. Anita, originally from London, said she was "genuinely impressed" after stumbling upon an unmanned bright yellow trailer on the side of the road filled to the brim with bananas selling for $2 per kilogram. "I've never seen anything like it," she told Yahoo News. Fruit and vegetable stalls on regional roadsides across the country are a common sight for Aussies, with similar set-ups selling avocados, mangoes, lychees and in other parts of the country strawberries and mandarins. The Cairns banana stall is one of 11 in the area operated by the Banana Brothers. Owner Tony Trafford told Yahoo News the produce comes directly from local farms, and customers regularly tell him they "taste better" than store-bought bananas. "You don't get $2 snacks anywhere now," he said. "The stand is completely unmanned and runs on honesty. You can weigh your bananas on a little scale or just grab one," Anita said. Young expat amazed by 'brilliant' roadside feature Anita, who recently moved to Cairns with her partner, said she was getting her bearings in her new home when she came across the stand, which "stood out" on the roadside. "The bananas are organic and straight from a local farm, which makes it feel like a healthier and more authentic way to get your fruit," she said. "It's also just a fun experience and way more memorable than picking something off a supermarket shelf." She'd love to see other countries adopt the idea. "I'd love to see these kinds of stands become a normal thing all around the world. It would be amazing to see something like this back home in England," she said. Tony explained that the unmanned trailers operate on an honour system. Those without cash can use a built-in EFTPOS machine to pay with their cards. He explained that thefts do happen, including one prolific Maserati driver allegedly caught red-handed stealing large amounts of bananas and fleeing the scene. "Most people do the right thing, which we rely on," he explained, adding cameras do operate at all his sites across Cairns to deter opportunistic thieves. Queensland's $600m banana industry Far North Queensland makes up for 94 per cent of Australia's banana production, valued at around $600 million, according to the Queensland Government. Due to strict quarantine regulations, all of the bananas sold in Australia are locally grown. Earlier this year, Queensland's banana crops "copped a flogging" following unprecedented rain in the area. Luckily, only a small percentage of flooded farms' banana crops were destroyed following the deluge, but many faced four to five months of recovery after the trees' roots became waterlogged. But as locals waited for the water levels to subside, the town of Innisfail appeared to have nothing in its local Coles store except bananas. In one photo shared online, no other produce, except for the 18 boxes of the fruit, can be seen in a photo of the store's produce section. Anita moved to Australia with her partner two years ago, and after travelling around she believes Cairns is one of the best places she's ever lived. "The winter weather alone is a winner," she said of the tropical climate. "Being surrounded by the Great Barrier Reef, tropical islands, mountains, and the Daintree Rainforest honestly feels surreal. I still can't believe I get to call this place home," she said. Do you have a story tip? Email: newsroomau@ You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.

ATO's urgent warning to tradies over 'growing' tax trend: 'We will not tolerate'
ATO's urgent warning to tradies over 'growing' tax trend: 'We will not tolerate'

Yahoo

timea day ago

  • Yahoo

ATO's urgent warning to tradies over 'growing' tax trend: 'We will not tolerate'

The Australian Taxation Office (ATO) has put out an alert to all business owners after spotting a trend emerging primarily in the building and construction industry. The tax office has discovered some tradies have been committing GST fraud, making dishonest claims and falsifying invoices. These issues have also been noticed in privately owned and wealthy groups, and the ATO wanted to send a "clear message" to stamp it out. Assistant Commissioner Adam O'Grady said despite previous warnings against this behaviour, it's clear this trend is "growing". "While the numbers of businesses involved are relatively small, some are attempting to claim tens of millions of dollars in GST refunds they're not entitled to," he said. RELATED ATO's major tax return update for 15 million Aussies: 'It's time' FIFO worker's huge compensation win after being unfairly sacked Tradie loses $449,000 in an instant after missing key detail "Most businesses do the right thing. What these others are doing is simply not fair. We're dealing with dishonest and deliberate attempts to cheat the tax system. "We will not tolerate this fraudulent behaviour deliberately undermining the system or providing an unfair advantage over honest businesses."What dodgy behaviour has the ATO discovered? The ATO has noticed some businesses have been colluding with others to create fake invoices to justify "overly inflated" GST refunds. They've come in the form of development and construction costs "that never occurred", or intangible services like management fees that "were never provided". The tax office has even spotted multiple entities claiming GST credits for the same invoice, as well as invoices that were "completely fictitious". "Often these schemes are dressed up and sold as clever schemes with a figleaf of technical analysis – but any scheme which generates GST refunds through paper shuffling is likely to be ineffective at best, and civilly and criminally actionable fraud at worst," O'Grady said. "If it's too good to be true, it probably is." The ATO is calling on businesses doing the right thing to let it know if they hear of any dodgy behaviour. "GST revenue is vital to Australia's economy, funding essential services delivered by states and territories," O'Grady added. "Those involved are abusing the system, tarnishing the reputation of the property and construction industry and making it harder for compliant businesses to operate." If you suspect another business of being involved in these arrangements, you can confidentially report it to the ATO by making a tip-off online or by calling 1800 060 062. What are the penalties for GST fraud, dishonest claims, falsifying invoices? The tax office has warned if you're caught and convicted of any of these activities, you can face serious consequences. This can include: Interest charges Penalties Fines Prosecution Referral to the Commonwealth Director of Public Prosecution The ATO has urged people to come forward now and make a voluntary disclosure about their activities before getting a knock at the door from them. The penalties could be reduced if you do this and cooperate with the tax office in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store