Council of Trade Unions economist Craig Renney says the cost-of-living payment announced in the Budget targets the right people at the right time

The Government's announced a package that gives low-income earners an extra $27 a week to ease the pressure of rising costs.

Mr Renney says the three-month policy is carefully targeted, both in timeframe and demographic.

He says a tax cut may not have the same effect.

Mr says the more targeted and timely you can make a tax cut, the better, and this package is immediate, targetting a group that doesn't get anything else.