Tax Strategy15 March 20225 min read
March 2022: the 2022 Budget and the fuel-excise cut
An election Budget with fuel excise halved and a one-off $420 LMITO top-up. Stimulative into a tightening cycle — exactly the wrong setup for inflation.
The investor read
Cost-of-living measures held household real income up through Q2 2022, sustaining consumer spending and reinforcing the case for RBA hikes. The Budget effectively pulled forward the rate cycle.
Positioning
The investors who used the March–April 2022 window to convert variable loans to 3-year fixed (last offers around 3.49%) saved 150–200bps over the next two years versus those who waited.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.