From 1 July this year, over 10 million individuals will receive a one-off $420 cost of living tax offset. Combined with the low and middle income tax offset (LMITO), eligible low- and middle-income earners will receive up to $1,500 for a single income household, or up to $3,000 for a dual income household.
Tax relief from the cost of living tax offset and LMITO
| Taxable Income | Cost of Living Tax Offset |
| $90,001 to $125,999 | $420 to $1,500 relief |
| $48,001 to $90,000 | $1,500 relief |
| $37,001 to $48,000 | $675 to $1,500 relief |
| Up to $37,000 | Up to $675 relief |
This is on top of the higher income support payments from existing indexation arrangements. Income support payments increased by 2.1 per cent in March 2022, benefiting almost 5 million Australians. The Age Pension, Disability Support Pension and Carer Payment rates increased by more than $20 a fortnight for singles and $30 a fortnight for couples.
They will receive a similar increase again in September. Payments are regularly increased to help shield people from the rising cost of living. It will be paid automatically to all eligible pensioners, welfare recipients, veterans and eligible concession card holders in April 2022