In response to calls for cost-of-living relief, Treasurer Jim Chalmers has introduced significant measures in the 2024-25 federal budget, including energy bill rebates, increased rent assistance, and changes to paid parental leave.
Energy Rebates
Starting July 1, every Australian household will receive a $300 credit on their electricity bills, and small businesses will get $325. These credits will be automatically applied to bills in quarterly installments, with the government allocating $3.5 billion for this relief. Despite some calls to means-test this measure, Chalmers defended it as a way to help people across the income spectrum.
Rent Assistance
The budget also increases the maximum rate of Commonwealth Rent Assistance by 10%, building on a previous 15% increase announced in September. This is the first consecutive increase in over three decades. Single parents or couples with one or two children will see their payments increase by more than $70 a fortnight.
Tax Cuts Australia
Australians will see tax cuts as part of the revised Stage 3 tax plan, offering about $1,929 annually for those earning $90,000. These cuts, starting July 1, will be reflected gradually in paychecks, effectively acting as a pay rise. This comes as the Low and Middle Income Tax Offset, which provided about $1,000 in refunds in previous years, is phased out.
Paid Parental Leave – Australia
From July 1, 2025, government-funded paid parental leave will include an additional 12% superannuation payment, benefiting around 180,000 families annually. This measure, costing $1.1 billion, is part of a broader plan to increase paid parental leave to 26 weeks.
Student Debt and Paid Placements
The budget also addresses student debt by capping the Higher Education Loan Program (HELP) indexation rate to match either the consumer price index or the wage price index, whichever is lower, eliminating about $3 billion in student debt. Additionally, it introduces means-tested payments of $319.50 per week for student teachers, nurses, and social workers during compulsory placements, although some student groups feel this is insufficient.
Welfare Payments
While there was pressure to increase the $762.70 fortnightly JobSeeker payment, the budget does not include a general increase. However, those able to work up to 14 hours a week will see a $55 increase in their payments when combined with a higher energy supplement, benefiting around 5,000 people.
Economic Outlook
Chalmers’s third budget delivers a $9.3 billion surplus for 2023-24, the first in nearly two decades, supported by high commodity prices and low unemployment. However, it also signals challenging times ahead with rising unemployment and stagnant real wage growth until 2026-27.
Chalmers emphasizes that the budget balances immediate relief with long-term optimism: “We are realistic about the pressures people face now — and optimistic about the future.”