Treasury Laws Amendment (Cost of Living Support and Other Measures) 2022

✦ Plain-English Summary

# Treasury Laws Amendment (Cost of Living Support and Other Measures) 2022

## What it does
This bill makes several changes to tax and welfare laws to help with living costs. The main things are: a one-off cash payment to eligible Australians, adjustments to Medicare levy thresholds (meaning more people won't have to pay the extra levy), and tweaks to tax deductions and offsets.

## Why it matters
Cost of living was rising sharply in 2022, so this gives eligible people a direct payment and reduces some tax bills. For those on private health insurance, higher Medicare levy thresholds mean you might avoid the surcharge if you don't meet the income requirements.

## Key details
- **One-off payment**: A cost of living payment goes to eligible people on social security, veterans' payments, and some other groups — the exact amounts are in Schedule 8
- **Medicare levy changes**: Income thresholds for when you have to pay the Medicare levy surcharge are increased, helping middle-income earners
- **Tax deductions**: COVID-19 tests become tax deductible, and new charitable organisations can claim deductible gift recipient status
- **Timeline**: Most changes start immediately after the bill passes; some kick in from 1 July 2022

Official Description

Introduced with the Excise Tariff Amendment (Cost of Living Support) Bill 2022 and Customs Tariff Amendment (Cost of Living Support) Bill 2022, the bill amends the: A New Tax System (Medicare levy Surcharge—Fringe Benefits) Act 1999 and Medicare Levy Act 1986 to: increase the Medicare levy and Medicare levy surcharge low-income threshold amounts for individuals, families and individual taxpayers and families eligible for the seniors and pensioners tax offset; and increase the phase-in limits as a result of the increased threshold amounts; Income Tax Assessment Act 1997 to: provide an income tax deduction for taxpayers who incur relevant COVID-19 testing expenses in gaining or producing their assessable income; update the list of deductible gift recipients to include six new entities; and increase the low and middle income tax offset by $420 for the 2021-22 financial year; Corporations Act 2001 to provide regulatory relief to allow businesses to create employee share schemes which they would otherwise be unable to operate due to requirements under the Act; Taxation Administration Act 1953 to reduce the gross domestic product adjustment factor for the 2022-23 financial year to 2 per cent; National Health Act 1953 to lower the Pharmaceutical Benefits Scheme safety net thresholds for concessional to 36 scripts and general to $1457.10 from 1 July 2022; Income Tax Assessment Act 1997 , Social Security Act 1991 , Social Security (Administration) Act 1999 and Veterans' Entitlements Act 1986 to provide for the payment of a cost of living payment of $250 to certain income support recipients, compensation payment recipients and concession card holders; and Product Stewardship (Oil) Regulations 2000 to make consequential amendments.

Full bill PDF →APH page →

Audit History

Introduced

30 Mar 2022

Last updated on APH

10 Apr 2026

Outcome date

31 Mar 2022

Last checked by Crossbench

yesterday

Full text indexed

yesterday

🗳️

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

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