May 14th 2024.
As the cost of living crisis continues to put pressure on households, Australians are eagerly awaiting the federal budget in hopes of finding relief. In response, the government has announced a range of initiatives intended to ease the burden in various areas such as energy, medicine, rent, and taxes.
Treasurer Jim Chalmers stated in his speech that inflation may return to its target range earlier than expected, possibly by the end of this year. While waiting for this to happen, here's a breakdown of what Aussie households can expect from the budget.
Firstly, there will be relief for energy bills. Starting from July 1, approximately 10 million households will receive a $300 rebate, while one million small businesses will receive $325. The government believes that this assistance will result in a 0.5% decrease in headline inflation by 2024-25. Chalmers pointed out that the 2022 invasion of Ukraine by Russia caused a major shock to global energy prices, affecting Australian families and businesses. Therefore, the government has stepped in to provide support.
Next, there will be tax cuts for all Australian taxpayers. The promised average cut of $1888 per year, or $36 a week, will benefit a couple earning $75,292 and $60,000 respectively, with a combined tax cut of $2740. On top of that, they will also receive $2430 under the new child care subsidy for their two young children attending a long day care centre three days a week. When combined with the energy bill rebate of $300, their total benefit will be $5470.
The government will also impose two price freezes on the Pharmaceutical Benefits Scheme. The first freeze, from January 1, 2025 to December 31, 2025, will keep the maximum payment for prescriptions at $31.60, and the second freeze, from January 1, 2025 to December 31, 2029, will cap prescription prices at $7.70 for concession card holders, including pensioners. This will benefit 60% of prescription holders in the country.
The budget will also include a freeze on deeming rates until June 30, 2025, affecting those on an age pension or reliant on deemed financial investments alongside their welfare payment. For people receiving rent assistance through the Commonwealth Rent Assistance program, the maximum rate will be increased by 10%.
In addition, the government plans to cut $3 billion in student debt, affecting over three million Australians. The Higher Education Loan Program indexation rate will be matched to the lower number between the Consumer Price Index and the Wage Price Index, resulting in a decrease in debt for former students.
Overall, the budget aims to provide relief for Australians from various financial pressures. It is important to note that these measures may have different impacts on different individuals. We encourage you to stay informed and follow our WhatsApp channel for the latest updates on breaking news, celebrity, and sport without any comments or algorithms. Your privacy is important to us.
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