The Treasurer has unveiled extra cost-of-living relief tackling pressures on energy bills, renters and pensioners in a federal budget which he says balances the "here and now" with the "decades to come".
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Energy bill relief will be scaled up, providing a $300 rebate to all Australian households in a package which will cost $3.5 billion to the 2025-26 financial year.
Previously about 5 million eligible households could access the rebate, but it will now ease pressure in about 10 million.
The impact of the boost will vary by location, with states and territories previously paying varied sums.
The maximum Commonwealth contribution last year was $250, while in the ACT it was just $125.
Relief will also include targeted expansions to support payments, with adjustments to rent assistance and expanded access to JobSeeker.
The maximum rates of all Commonwealth Rental Assistance payments will lift by 10 per cent from September 20, 2024.
The $1.9 billion investment over five years, will benefit nearly one million Australian low-income households.
The amount of assistance varies depending on household type, with single recipients receiving the lowest sum, while those with three or more children receive the most.
This is the second consecutive increase to maximum rates, after the Albanese government lifted them by 15 per cent in the May 2023 budget.
The rate of JobSeeker will not be increased, but access to a higher payment will be expanded to about 4700 single recipients with a partial capacity to work.
This affects those who are able to work up to 14 hours per week, and means that from September 20, 2024, they will be able to access a minimum additional $54.90 per fortnight, though this is inclusive of the energy bill relief.
Pensioners and others on income support payments will benefit from a further 12 month freeze to deeming rates, which are applied to their financial investments.
The deeming rate, which can apply to bank accounts, managed funds, shares and superannuation, assumes these assets earn a certain rate of income.
It will remain frozen at a lower rate of 0.25 per cent for the first $64,400 of a single recipient's financial investments, or for a couple's combined investment of $100,200.
Investments above these amounts will have a 2.25 per cent deeming rate applied.
The freeze, first implemented in 2022, will benefits about 876,000 current income support recipients, more than half of whom are aged pensioners.
The government also expected about 136,000 JobSeeker recipients to keep more of what they earn, and about 96,000 single parents who receive assistance.
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Announcing the changes in his budget speech on Tuesday night, Jim Chalmers highlighted relief for struggling Australians as the government's "number one priority".
"The Budget shows we are realistic about the pressures people face now - and optimistic about the future," Dr Chalmers said.
The new measures build on pre-budget announcements, including the overhaul of the stage three tax cuts, cheaper medicines, more flexibility for carers, and a decision to cap indexation on student loans at the lowest available rate.
Facing pressure to act on cost of living earlier in the year, Prime Minister Anthony Albanese unveiled an overhaul of the planned tax cuts, with a focus on low-income earners paying less.
The new tax cuts will lower the tax rate for the lowest bracket ($18,201 to $45,000) to 16 per cent, and retain a 37 per cent tax bracket for money earned between $135,000 and $190,000.
READ MORE BUDGET COVERAGE:
Most students are also due to feel some relief this year, with a decision to cap the indexation on loans at the lower of either the Wage Price Index (WPI) or Consumer Price Index (CPI) backdated to 2023.
This is expected to reduce debts by $3 billion, with the WPI rate of 7.1 per cent to be slashed to the lower CPI rate of 3.2 per cent.
Carers will also be able to work and study more while still receiving support payments, with a limit of 24 hours of work, study or volunteering, changed to 100 hours over four weeks.
The maximum cost of medicines subsidised by the Pharmaceutical Benefits Scheme has also been frozen, with no one to pay more than $31.60.
Miriam Webber
Miriam Webber is a federal politics and public sector reporter, with a keen interest in integrity, transparency and accountability in government. She has been a member of the federal political bureau since 2023, and previously worked as the city reporter. Reach her at miriam.webber@canberratimes.com.au
Miriam Webber is a federal politics and public sector reporter, with a keen interest in integrity, transparency and accountability in government. She has been a member of the federal political bureau since 2023, and previously worked as the city reporter. Reach her at miriam.webber@canberratimes.com.au
