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.


shutterstock_1126057424.jpg
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.
 
Last edited:
Sponsored
And what about those of us in supported independent living houses who get nothing. I'm one of three in a SIL house. Only I pay taxs, and get the tax cuts, my house mates don't we still have to pay our provider, $925 and we get $130 a week for food, but you've still got to pay your chemist bills and mine was $1270 last month. Plus additional food, if you don't eat what is provided. Plus like everyone else our doctors and specialists bills, maybe like everyone else, it would be nice to get a little something. I personally think those at the top end should miss out and those at the lower end get more. Just because I live in a SIL house, we're not entitled to any cost of living help.
What is a supported independent living house, please. I have no idea.♥
 
Top income tax rate, 48c in the dollar. Next tier down, 38c in the dollar, next tier down, 28c in the dollar, next tier down 18 c in the dollar. First $18 000, tax free. Top tier kicks in at $140 000pa.

I don't expect to get voted into Parliament by anyone. But then I was brought up in Pomgolia where there was a good NHS and social security system, free university tuition fees if you got the required A-levels to enter university (2 Es enabled one to sit the Oxford and Cambridge entrance exams), and grant assistance towards a uni student's cost of living expenses (rent, food etc). Not to mention no food-banks at that time. That social infrastructure began its bitter end under Thatcher who cut the top income tax rate from 83% to a mere 60% on her accession power and sold off the Council Houses (public housing).

$48c in the dollar is a bit much for Australians. So kick out the ALP, a socially gutless mob, and vote Tory again, as we have done this last 30 years. This Lucky Country has Great Expectations.
 
WTF? Already more than a billion $'s from Australia, now another 100 mil. While Australians get nothing. Working people are living in tents on the streets. I HATE LABOR with a passion !

.1714278569275.png
 
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.
What did the previous government do for us? A big fat nothing. What did it do for you?
 
  • Like
Reactions: Rob44
A DECENT PAY INCREASE TO PENSIONS ESPECIALLY THE AGED ,CARERS and the DISABLRD who have been left out of aboveboard increases to welfare
 
  • Like
Reactions: Rob44
"They have failed on too many levels and pushed their Communist agenda too strongly".

Communist agenda? Sweet FA useful social support, unnecessary tax-cuts in support of the LNP's past idiocy and trying to frighten Communist PR China with nuclear-powered submarines? Most peculiar Communism.
 
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?
exactly my point. we are the ones always miss out
 
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?
Self funded retirees fair even wrose - no fortnightly payments, no prescription or other discounts - etc, etc. The Seniors Healthcare card should be for everyone over age 70
 
  • Like
Reactions: Rob44
And what about those of us in supported independent living houses who get nothing. I'm one of three in a SIL house. Only I pay taxs, and get the tax cuts, my house mates don't we still have to pay our provider, $925 and we get $130 a week for food, but you've still got to pay your chemist bills and mine was $1270 last month. Plus additional food, if you don't eat what is provided. Plus like everyone else our doctors and specialists bills, maybe like everyone else, it would be nice to get a little something. I personally think those at the top end should miss out and those at the lower end get more. Just because I live in a SIL house, we're not entitled to any cost of living help.
The $925 ,is that weekly ? Is that your share or combined amount?
Do you have to pay the electricity bill and water ?
 
  • Like
Reactions: Rob44
Why can't they just tax the giant overseas corporations that rape this country of its resources but get subsidised by the government to do this and pay next to nothing in taxes and royalties.
If this was implemented there wouldn't be any reason to rob Peter to pay Paul to appear to be giving out paltry benefits to the true taxpayers.
 
  • Like
Reactions: Rob44
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?
Yes, I was contemplating that very same comment… I am 64 years old paid taxes all my working life.. now I live off a government pension because I had to retire early due to injury and although I cashed in my super to buy a house because we could never have afforded rents and just to clarify again my taxes, my last return in 2010 was tax paid $22,000 with a refund of just $600. I think we are due a lot more help than we actually get.
 
  • Like
Reactions: garlic and Rob44
Cut immigration to nil they are the ones causing a lot of problems especially housing buying and rental causing cost of living and interest rate increases.
 
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.
Where do you people get these stupid stories?
 
What did the previous government do for us? A big fat nothing. What did it do for you?
WHAT HAS ANY GOVY DONE FOR THE EKDERLY PENSIONERS AS FAR AS PENSIONS GO
LIE LIE LIE ABOUT THE CPI FOR STARTERS
%1.8 percent inflation in the last 12 months bullshit workers $1500 PAY RISE AND PENSIONERS WHO WORKED ALL THEIR LIVES A MEASLY $432a year which does not even cover the electricity increase let alone everything else
 
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
WOW, it's getting to the stage where decisions have to be made between food or medication. Not good.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×