Australians earning up to $126,000 will receive a one-off payment to help alleviate cost-of-living pressures, set to be announced in tonight’s federal budget.

The low-to-middle income tax offset is currently worth $1080.

The payment was introduced as a temporary measure in 2018, but has been extended during the pandemic.

Tonight’s budget will see the offset increase by $420 to $1500.

It’s a one-off measure, which will be available after the first of July, once a tax return is lodged.

The government believes the offset will ease cost-of-living pressures for 10 million Australians.

Nine News Canberra reporter Fiona Willan says it’s a one off, cost of living tax offset.

“Basically around 10 million Australians will pocket an extra $420 when they lodge their tax returns after July 1.”

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