ENERGY rebates for every household, a cap on the price of prescriptions and further relief for renters have led cost-of-living relief measures in the federal budget.<\/p>\n
Treasurer Jim Chalmers’ third budget also contains tax cuts of $36 a week on average for all taxpayers, while eligibility for JobSeeker payments will be extended.<\/p>\n
In announcing a second-straight budget surplus of $9.3 billion, the treasurer warned that while “fraught and fragile” economic conditions were ahead, Australia was prepared to meet the challenges head on.<\/p>\n
“In our future, we must strive for more than muddling through or making do,” Dr Chalmers told federal Parliament tonight (Tuesday, May 14).<\/p>\n
“This budget shows we are realistic about the pressures people face now, and optimistic about the future.”<\/p>\n
Power bill relief will see every household get a $300 energy rebate from July, while eligible small businesses will get a $325 rebate.<\/p>\n
As well, Commonwealth Rent Assistance will increase by 10 per cent for more than one million households, with the government spending $1.9 billion over the next five years.<\/p>\n
On average, those on rent assistance will receive an extra $19 per fortnight.<\/p>\n
The rent assistance rise is the first time there have been consecutive increases in the payment in 30 years.<\/p>\n
It’s expected the combined measures of energy relief and rent assistance will shave half a percentage point off inflation, with consumer price growth set to fall into the Reserve Bank’s target band of two to three per cent by the end of calendar 2024.<\/p>\n
The cost of medicines will also be frozen, with a cap of $31.60 set for prescriptions included in the Pharmaceutical Benefits Scheme.<\/p>\n
Cost caps of $7.70 will also be in place for five years for pensioners and concession holders.<\/p>\n
Further cost-of-living measures include the well-foreshadowed stage three tax cuts, with all taxpayers to keep more of their pay from July.<\/p>\n
On average, taxpayers will save $1888 in the upcoming financial year, or $36 a week.<\/p>\n
Meanwhile, the Albanese Government will extend eligibility for the higher rate of JobSeeker payments to those with a partial capacity to work up to 14 hours per week.<\/p>\n
Almost one million people on income support will have social security deeming rates frozen for the next financial year.<\/p>\n
Dr Chalmers said the cost of living measures would be split between broad-based relief and targeted programs.<\/p>\n
The budget includes $6.2 billion in new housing measures, with $1.9 billion to go towards building 40,000 new social and affordable homes.<\/p>\n
The government has also flagged it would work with universities to increase the supply of student housing to meet demand.<\/p>\n
Universities will only be allowed to take more international students if they agree to build more housing, with government caps on foreign-born pupils to be imposed.<\/p>\n
University students on placements as part of their degrees in teaching, nursing, midwifery and social work will get an extra $319.50 a week from July 2025, while $3 billion has been wiped from student debt under further tertiary education changes.<\/p>\n
Indexation of HECS debt has changed to be based on inflation levels or the wage-price index, whichever is lower.<\/p>\n
The government also wants to boost the country’s manufacturing capabilities under a $22.7 billion Future Made in Australia fund.<\/p>\n
The fund will help to boost investment from the private sector to key areas in Australian industry.<\/p>\n
Small businesses are also set to benefit from an extension of the $20,000 instant asset write-off, with four million companies to share in $290 million in cash flow support.<\/p>\n
More than $800 million will also be spent on mental health support packages, headlined by a free digital support program for 155,000 people per year.<\/p>\n
Australians will be able to get access to services for mental health help without a referral, under the package which will be up and running by January 2026.<\/p>\n
Women fleeing from domestic and family violence will receive $5000 in federal support as part of a $925 million program.<\/p>\n