2024-25 federal budget set to ‘alleviate pocket pressures’ amid cost-of-living crisis

As the leaves turn golden and the air cools, Australians are not just preparing for the change of seasons but also the federal budget announcement.

It's a time when the government lays out its financial plans for the year ahead, and it's crucial to understand how these decisions will affect everyone’s pockets.

With the cost of living continuing to be a hot topic nationwide, many are eager to see what measures will be introduced to ease the financial burden.



Treasurer Jim Chalmers has been managing expectations, clarifying that Australians shouldn't expect 'big cash splashes' this time.

However, with the cost of living eating into budgets, the 2024-25 budget is anticipated to include policies to alleviate pocket pressures many are feeling.

Here's what we can look forward to on 14 May—and how it might make life a little easier for you.


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What should we expect from the 2024-25 federal budget? Credit: Shutterstock


Stage 3 Tax Cuts

The government's revised tax policy is set to be a cornerstone of this year's budget.

Initially announced in January and passed by parliament shortly after, the policy aims to provide more tax relief to low- and middle-income earners while still offering benefits to those on higher salaries.

The tax cuts are designed to address cost-of-living pressures and bracket creep.

The changes will lower the tax rate for the lowest two brackets and raise the threshold for the two highest brackets.



This is a shift from the original stage 3 tax cuts proposed by the previous government, which did not include lowering the tax rate for the first two brackets and would have abolished the 37 per cent bracket entirely.

From 1 July, every taxpayer will see a cut.

For example, someone earning an average income of around $73,000 will receive a tax reduction of $1504.

The exact amount you'll save depends on your earnings, but the policy's cost to the budget is estimated to be around $105.7 billion by 2027–28.

Stage Three Tax Cuts by Income.jpg
Energy Bill Relief

Hints from the government suggest that energy bill relief will continue to be a theme in this year's budget.

An existing policy provides up to $500 off power bills for eligible families and up to $650 for eligible small businesses.

‘Our government understands that for small business—as for Australian families—energy bills remain a source of financial pressure,’ Prime Minister Anthony Albanese said.



‘That's why the energy bill relief package I negotiated with the states and territories delivered up to $650 in savings for around 1 million small businesses, along with 5 million families.’

‘And as we put together next month's budget, small businesses and families will again be front and centre in our thinking.’

With energy bills expected to decrease or stabilise from 1 July for much of the country, the current relief package might be extended for another year, providing continued support for those feeling the pinch.

The rest of the plans will be revealed on 14 May, 7:30 pm at budget.gov.au.
Key Takeaways

  • The upcoming federal budget will address cost-of-living pressures with policies like Stage 3 tax cuts targeting low- and middle-income earners.
  • The Stage 3 tax cuts passed by parliament will lower tax rates for the lowest two brackets and raise the threshold for the two highest brackets, benefiting all taxpayers.
  • The government has hinted at continuing energy bill relief for families and small businesses in the forthcoming budget.
What are your hopes for the upcoming budget? Are there specific areas where you feel the government should focus its financial support? Share your thoughts in the comments below.
 
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anyone on a pension and pays for accommodation via lease arrangements they cannot claim rent assistance.
so, it does not help us. We only get the small rise in the old aged pension every 6 months
I paid rent through lease arrangement and received rent assistance - maybe you need to check again!
 
Tax cuts would have been great when I was working. Know I am a full time carer. When will pensioners get assistance?
 
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This Government knows that without doing " something " to try and buy votes it will be a failed one term a Government. Its too late.. They have failed on too many levels and pushed their Communist agenda too strongly. Most Australians are counting down the days to when we can remove them from office. The domestic and international damage they have done, the domestic damage will take years to repair, the international standing will take decades to repair.
Get ready for the INDUE Card if you are in receipt of Centrelink payments if the LNP get back in. They havw no desire to let this investors cash cow go, and have said they will want it.
We have a poor choice in our two party system, but do we really want more and worse of the hell we've been through with Horrison's corrupted LNP mob, who incidently are still mostly in opposition jobs.
 
This Government knows that without doing " something " to try and buy votes it will be a failed one term a Government. Its too late.. They have failed on too many levels and pushed their Communist agenda too strongly. Most Australians are counting down the days to when we can remove them from office. The domestic and international damage they have done, the domestic damage will take years to repair, the international standing will take decades to repair.
Get ready for the INDUE Card if you are in receipt of Centrelink payments if the LNP get back in. They have no desire to let this investors cash cow go, many of whom are Lib Party ministers and members, and have said they definitely want it.
We have a poor choice in our two party system, but do we really want more and worse of the hell we've been through with Horrison's corrupted LNP mob, who incidently are still mostly in opposition jobs
 
Tax cuts do not help people who are on a government pension. Where is the help for these people who have paid taxes all their life only to be ignored in the last years of their life by a hopeless government?
You get regular increases, year after year, decade after decade, guaranteed.
 
Tax cuts do not help people who are on a government pension. Where is the help for these people who have paid taxes all their life only to be ignored in the last years of their life by a hopeless government?
Can you tell me when the previous government did a pension increase outside of the yearly indexed one.
 
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Energy rebates are of little use to me, I still have not used much of the last one, a cash payment would be better which I could use for food and clothing.
 
Believe it or not there are people out here who do not receive any assistance at all, i am one such person, i am an aged DISABLED pensioner & i have been told that because i am a DISABLED aged Pensioner i should be receiving assistance from different quarters, by that i mean that i should be receiving financial assistance BECAUSE i am a DISABLED aged pensioner, BUT I DON'T!! I only receive the age pension, THAT'S IT!! I have no idea if this is true or not!! Is there anyone out here that can confirm or deny that fact for me!! I am aware of house cleaning assistance & aged care but at the moment I am receiving neither because i had a fallout with the head of Baptist care, i NEED help because i struggle to do the things that i normally do, i even find it very difficult to walk to my own kitchen, but i have no idea where i can find the assistance i need & things are getting desperate!!
 
Every now and again, people on here talk about a component of the tax they were paying each year on their wages etc, which was put into a fund to pay for the age pension. I looked this up and read an article on this by Noel Whittaker. I was fascinated because l am an accountant and l had not heard of this when studying the tax act. Apparently the fund did exist however the balance of about £100 million was transferred to consolidated revenue in 1977. So l guess you can blame the LNP for that. Allocation of taxes to the fund was more of a treasury matter; it does not appear to have been part of the tax legislation. Unfortunately it was just a fund which politicians were able to more or less abolish as they wished. It was just a large fund with no individual accounts for individual tax payers. It was actually for the payment of all social security entitlements not just for the age pension. It is sad that the fund was transferred to consolidated revenue by the LNP and l understand people feeling that something has been taken from them.
 
I have a simple solution for those who have solar have the solar rate increased to 20c kWh fed to the grid .alternatively stop grid fee feeding and use what you generate from from your roof.
 
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Yes. Don't forget the Pensioner. We need help too. We have already paid our taxes over the years we worked. So give us a relief package too.
 
Tax cuts. Yippee! No social support or effective working health-care infrastructure; sack the government! Welcome to Australia, all ye Australians who voted Tory from 1994 onwards.

Taxes, stupid, pay for socially beneficial infrastructure including our Old Age Pension.
 
I tried everywhere to get some help the only way to get help is to be in arrears and no money in the bank , which will be me very shortly, disgusting you have to lose everything you have earned in your working life to get help 😡the system is so wrong ,if I was an alcoholic or drug addict and living on the street help is there
For the first time in my life, I am 71, my wife and I have our own home, inherited from my wife's mum . Even though we have this we still struggle to make ends meet. Our 2 adult daughters live with us because there is nowhere to rent. The house is of an age where everything is starting to need a facelift .We have 4 adults living in a 3 by one house where the toilet facilities etc cannot cope.. We really need to extend the house to get it liveable, another 2 bedrooms and a new bathroom. The problem is not money it's just the plain fact that nobody wants to lend us the money to extend and nobody wants to do the job! At my time of life, I can't do any extensions myself because I have been unemployed since 1991 due to health problems, so there is no Superannuation to fall back on. My point is that if we're struggling, how the hell are those OAPs, still with a mortgage or trying to rent able to manage with the rental situation in a shocking situation and a pension that, for some, doesn't match the cost of living, they need all the help that they can get. We can't all live in 5 yellow nuclear submarines but the money that is spent on them would probably fix all of our problems for people of all ages.
 
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So many medications now hard to get or not funded my bill every fortnight is $172, and luck I have a Chemist who allows me to have an account, because some weeks just couldn’t afford it
It's a drop in the ocean....$26.00. 0.81% of the rent paid....
 

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