From Babies to Boomers: What’s in the Budget for You?

The 2024 federal budget, presented by Treasurer Jim Chalmers, focuses on cost-of-living relief through measures such as tax cuts, power bill rebates, and cheaper medicines.

Here’s a breakdown of the key points and their implications for different demographics.

General Benefits

• Tax Cuts: An average tax cut of $36 a week, amounting to $1,888 annually, benefits 13.6 million taxpayers.
• Power Bill Relief: A $300 rebate on power bills is provided, with an additional amount for small businesses.
• Cheaper Medicines: The government will spend $3 billion to lower the cost of medicines, freezing the maximum cost of PBS subscriptions for five years.

Specific Measures

For Students and Young People

• Tuition Debt: HELP debt indexation is capped at the lower of the consumer price index or the wage price index, delivering an average benefit of $1,200 to graduates.
• Training and Skills: $23 million will fund payments of $319.50 a week to 73,000 eligible nursing, midwifery, teaching, and social work students during mandatory work placements. Additionally, $350 million will expand the Fee-Free Uni Ready Courses program, and $88.8 million will create 20,000 fee-free TAFE courses in construction.

For Renters and Home Buyers

• Rent Assistance: Nearly $2 billion will increase all Commonwealth rent assistance rates by 10% from September 20, 2024, benefiting about 1 million households.
• Housing Supply: The budget aims to address the shortfall of 300,000 homes by boosting the supply in the tight property market.

For Families

• Paid Parental Leave: $1.1 billion is allocated to pay superannuation on government-funded paid parental leave from July 1, 2025.
• Cost of Living: Measures to help with grocery bills include empowering the competition watchdog to hold supermarkets accountable and publishing quarterly price comparison reports.

For Retirees

• Pension Deeming Rate: The age pension deeming rate freeze at 2.25% is extended for another year, helping about 450,000 age pensioners avoid potential payment cuts.
• Medicine Costs: The cost of PBS medicines for pensioners and concession cardholders is capped at $7.70.

Individual Stories

• Harriet Lowrie: A start-up worker saving to buy a home in Perth. She welcomes the superannuation on paid parental leave but is disappointed it will not take effect until next July.
• Michele Medcalf: A retiree from Morley, Perth, facing higher costs of car insurance, petrol, and mortgage rates. She supports measures to reduce electricity prices and help with grocery bills.
• Brooke Allen-Rhodes: A single mother and small business owner on the Sunshine Coast, struggling with the high cost of renting and disappointed by the scrapping of the National Rental Affordability Scheme.
• For more information about these benefits, visit our Frequently Asked Questions section.

Conclusion

The 2024 federal budget aims to provide immediate cost-of-living relief through a variety of measures targeting different demographics.

From tax cuts and power bill rebates to increased rent assistance and cheaper medicines, the budget attempts to address the financial pressures faced by Australians across the board.