Back to Inspire Home


Winners and losers of the 2022 Federal Budget

By ,| 7 min read

The 2022 Federal Budget was announced on Tuesday, 29th of March by Treasurer Josh Frydenberg.

This pre-election budget breaks down the government’s intended expenditure in the upcoming financial year and unveils its plans for championing Australia’s economic recovery and growth.

With the recent flooding in Queensland and New South Wales, the development of the Russia-Ukraine war and the ongoing impacts of the COVID-19 pandemic, we may see the start of a new economic era.

Read on to learn more about the winners and losers of this year’s budget and how prospective property buyers will be affected.

Winners of the 2022 Federal Budget

First home buyers

The government has decided to extend its home guarantee initiatives, creating more places for eligible applicants in both the First Home Guarantee and Family Home Guarantee schemes.

We’ll also see the introduction of a new scheme dedicated to helping regional home buyers, called the Regional Home Guarantee.

In total, $8.6 million will be dedicated to these home buyer schemes over the next 4 years.

The First Home Guarantee scheme allows first home buyers to purchase a new or existing property with a deposit of as little as 5% without being charged Lenders Mortgage Insurance (LMI). This is because the government covers up to 15% of the home loan deposit for eligible participants.

This scheme will expand to allow 35,000 places for eligible first home buyers in the upcoming financial year, up from 10,000 last year.

The Family Home Guarantee, which supports single parents in purchasing a home with a deposit of as little as 2%, will see 5,000 additional places issued from July 1st, 2022 to June 30th, 2025.

Buyers in regional areas could benefit from the Regional Home Guarantee, which assists those with a deposit of as little as 5%. Each year, 10,000 places will be reserved for regional buyers who have not owned a home in 5 years – meaning you don’t have to be a first home buyer to access this scheme.

Since they were introduced, almost 60,000 Australians have been supported by home guarantee schemes.

Get a free property report in seconds

Search an address for price estimates and sales history.

Search a property

Flood response

Over $6 billion has been allocated to disaster relief for the recent Queensland and New South Wales floods, including:

  • $2.2 billion for household income support, temporary accommodation and social services
  • $665 million to fund repairs and support services for businesses and farmers
  • $588.6 million for community clean-up and rebuilding.

The government has also set aside $3 billion to accommodate additional spending for flood recovery costs.


The Russia-Ukraine war has led to rapidly increasing oil and gas prices, prompting the development of a temporary plan to bring petrol prices down.

The government will be cutting the fuel exercise (the flat tax levied on each litre of petrol) in half. This will save motorists 22c per litre and is expected to last 6 months.


Low and middle-income earners earning less than $126,000 will be eligible for a $420 ‘cost of living tax offset’ to assist with increasing costs of living.

The government's $1,080 low-to-middle middle tax offset is back this year, allowing those eligible to get up a total of up to $1,500 back at tax time.

These initiatives are estimated to cost $4.1 billion over the next few years.

Small businesses

The government is dedicating $1 million over 4 years to allow small businesses to claim a 20% bonus deduction on the cost of laptops, cloud computing and other digital services that encourage digital working.

An additional $550 million will allow small businesses to claim a 20% bonus deduction on the cost of external staff training.

Expecting and new parents

A slight change in the government’s Paid Parental Leave policy will allow the 2 weeks of ‘Dad and Partner Pay’ and 18 weeks of ‘Parental Leave Pay’ to be combined. This means parents can choose to split the leave in whichever way works best for them.

Single parents will also now be able to access the full 20 weeks of leave.

The income test will also be adjusted, allowing a household income threshold of $350,000 a year.

In total, these changes will cost $346.1 million, distributed over the next 5 years.


A total of $58 million will be contributed over the next 4 years to helping women with endometriosis, including:

  • $16 million to fund a specialised clinic in each state/territory
  • $25 million to cover the cost of MRIs under Medicare
  • $5 million to develop Endometriosis Management Plans to support women with this disease.

A new $181 million program is being introduced to provide free genetic testing for several conditions for couples planning to get pregnant. Payment will be covered by Medicare from November 2023.

The government has also committed $1.3 billion over the next 6 years to the National Plan to End Violence Against Women and Children. Funds will be contributed to several different programs that help women who are victims of domestic and family violence.

Mental health

Half a billion dollars will be contributed to the National Mental Health and Suicide Prevention Plan over the next 5 years.

Funds will be split between several organisations and Australians on a mental health plan will receive an additional 10 partially Medicare-subsidised visits to a psychologist.

Regional areas

Over the next 11 years, the government has committed to spending $7.1 billion on a new Energy Security and Regional Development Plan. This will fund projects such as upgrading ports and roads and building dams and logistic hubs in regional areas across Australia.

Additionally, there will be $2 billion set aside for a Regional Accelerator Program, which will support education, exports and supply chains in regional areas.

Finally, $800 million will be allocated to improving mobile phone coverage in these areas.

Get free expert advice on your home loan

Choose a time for one of our Home Loan Specialists to call you.

Let's chat

Indigenous rangers

The budget will provide $636.4 million in funding to support the Indigenous ranger workforce and create an additional 2,000 ranger jobs in regional areas by 2028.

The government hopes this will also encourage more Indigenous women to work as rangers on land and sea country and help traditional owners to rebuild their communities.

Pensioners and welfare recipients

Pensioners, veterans and concession card holders will receive a one-off payment of $250 to assist with the rising cost of living. This is expected to be paid out in just a few weeks to 6 million people across the country.

This group will also be able to benefit from cheaper medicine costs, needing 12 fewer scripts before receiving a discount on their prescriptions.


Defence spending in this year’s federal budget includes:

  • $38 billion to grow the defence force and gain more troops
  • $10 billion for an east coast submarine base
  • $4.3 billion for a new dry dock facility in Western Australia
  • $875 million to upgrade military bases around Australia.

Cybersecurity will receive $10 billion over the next 10 years to help fight hackers, spies and prevent foreign interference.

Losers of the 2022 Federal Budget


At the end of 2021, inflation had been forecasted to reach 2.75% but has jumped up to 4.25%, a higher number than anticipated. This unexpected growth has left wages to trail slowly behind and they aren’t expected to catch up until later in the year.

The budget predicts that wages will only be slightly higher than inflation in the next few years, meaning cost of living pressures aren’t likely to ease anytime soon.


The budget brought no news of new direct funding for renewable energy projects, instead choosing to invest close to $250 million on low emissions technologies over the next 5 years.

Also over the next 5 years, $148.6 million will be spent to fund investment in ‘affordable and reliable power’.

Funding for some of the government’s key climate change agencies – which focus on renewable or low emissions technologies – is expected to decrease by 35% over the next 4 years.

Tax evaders

The government is contributing over $600 million over the next 3 years to the Australia Tax Office (ATO) to target tax evasion by multinational corporations, large public and private groups, trusts and wealthy individuals.

Over the next 4 years, this initiative is expected to recover $2.1 billion in revenue from tax.

Neutral outcomes of the 2022 Federal Budget

Environmental initiatives

The government earlier announced that it would be dedicating $1 billion over the next 9 years to the Great Barrier Reef to improve water quality and fund reef management and research.

Over the next 3 years, $100 million will be spent on community-driven action to help the environment, including:

  • $20.3 million to plant trees over the next 3 years
  • $53 million for koala conservation over the next 5 years
  • $26.8 million for the management and protection of Commonwealth National parks over the next 5 years.

Despite efforts to bolster environmental protection, some experts believe these initiatives will make little difference if global carbon emissions aren’t effectively reduced.

Aged care

The budget plans to commit $49.5 million to subsidise 15,000 vocational education and training places for the aged care workforce, following an earlier announcement that aged care employees would get two bonus payments of $400.

$340 million will also be committed to creating pharmacy services within residential aged care homes to improve the management of medication in these facilities.

Last year, the aged care royal commission revealed that this sector is experiencing a shortage of workers. Despite this, the government has made no commitments to increase aged care workers’ pay.

Is your interest rate this low?

Make sure you always have best home loan deal.

Compare rates today


The Australian Apprenticeships Incentive Scheme will replace the previous Boosting Apprenticeship Commencement scheme, which ends on June 30. These schemes were put in place to encourage businesses to contribute more spend on apprentices.

The new scheme is restricted to a list of ‘priority occupations’ and offers lower-wage subsidies than the previous scheme – 10% for first and second-year apprentices and 5% for third-years.

Apprentices who start training in a ‘priority occupation’ will be eligible to claim $5,000 in cash payments over their first 2 years.

Businesses that hire apprentices outside of the priority list will be eligible to claim a one-off payment of $3,500.

This scheme will change from July 2024 and instead will offer a $4,000 incentive to employers and a $3,000 payment to apprentices on the list of ‘priority occupations’.

Foreign aid

There has been little increase in the official foreign aid budget, sitting at roughly $4 billion per year. However, the pause on the indexation of funding will end soon, causing this amount to increase by 2.5% next year and boosting funding to around $4.1 billion.

$460 million is also being spent on temporary foreign aid measures, such as vaccine delivery. This boosts the unofficial aid budget to a total of roughly $4.549 billion.

Australia has so far provided $156.5 million in assistance for Ukraine in the Russia-Ukraine war.

Young people

Students in university or TAFE will experience no benefits from the budget this year.

Besides the new apprenticeship scheme, mental health funding services for young people and the extension of the first home buyers scheme, there is little for younger Australians to be excited about in this year's budget.

The 2022 Federal Budget has provided good insight into the government’s primary focus and goals for the next financial year. If you’d like to know more about how this announcement might affect your home loan or property goals, get in touch with a Home Loan Specialist.

What could your home loan repayments look like?

Calculate your loan repayments


Got a home loan question? Just ask!

We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: federal budget, home loan, first home buyer, first home owners grant, first home, family home

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
Home loan repayment saver tool

Home loan repayment saver tool

Enter a few details about your home loan and see how much you could save on your repayments

Important legal stuff
Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.
Made with love at Circular Quay in Sydney, Australia. © 2022. All rights reserved.