Federal Budget 2024: What does it mean for you?
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Treasurer Jim Chalmers has finally handed down the much-anticipated 2024 federal budget, and as always, it's a mixed bag of winners and losers. From energy rebates to cheaper medicines, tax cuts to spending cuts, the budget contains a dizzying array of measures that will impact the hip pockets of Aussies in different ways. But what does it mean for seniors and pensioners? And on a personal level, what does it mean for you?Let's dive in and find out if you'll be better or worse off thanks to this year's budget.
Who were the winners and losers of the federal budget? Image Credit: Shutterstock
Taxpayers & (Some) JobSeekers
The big ticket item this budget was tax cuts, with the stage 3 tax cuts locked in to provide relief for 13.6 million working Australians. The average punter will get an extra $36 a week in their pay packet from July.
If you’re receiving JobSeeker payments (those working up to 14 hours a week), you can expect a $55 increase in fortnightly payments (when combined with a higher rate of the energy supplement). This is already a point of contention in budget discussions since, despite calls for an increase, most JobSeekers will not see a rise in their payments.
Energy Relief
Households are also getting some much-needed cost of living relief, with a $300 energy bill rebate ($75 each quarter) to help with those skyrocketing power bills. It applies to every household and will be automatically credited to your electricity bill from July 1.
‘We know Australian families and businesses have felt this pain—and that's why we've stepped in to help,’ said Treasurer Jim Chalmers.
It's not a long-term fix, but it'll help keep the lights on for those struggling this coming winter.
If you own multiple properties it’s currently unclear whether you will receive multiple $300 rebates.
‘Well, this is household bill relief of $300 for every household, every household gets it,’ said Albanese when questioned.
Meanwhile, Chalmers said energy bill relief will go to the person whose name is on the power bill.
Low-Income Renters / Rent Assistance
The government will bolster its Commonwealth Rent Assistance program, available for those on the disability support pension, carer payment, age pension, JobSeeker, youth allowance, Austudy, parenting payments, or family tax benefit (part B) paying above a certain amount on rent.
Just under one million Australian households will enjoy a 10 per cent increase in the maximum rent assistance available to them on top of the 15 per cent rise announced last year. It's the first time the payment has increased in two consecutive budgets in over 30 years but won’t take place until September 20, 2024.
Deeming Rates
Roughly 450,000 age pensioners (876,000 income support recipients in total) will also have the deeming rates on their financial investments frozen for 12 more months. The lower deeming rate will remain at 0.25% and the upper rate will remain at 2.25% until 30 June 2025.
The announcement will come as welcome news for pensioners who will now not see a drop in their welfare payments due to deeming rates. According to the Australian Financial Review, single pensioners will retain about $3,300 (that may otherwise have been lost if deeming rates were changed) under the move.
Cheaper Medication For Concession Cardholders
You can expect consistent medicine prices thanks to a freeze on the Pharmaceutical Benefits Scheme (PBS) co-payment. Usually the maximum cost goes up each year with inflation, but the freeze ensures no more than $7.70 is paid by pensioners for necessary medications. Age pensioners and other concession cardholders will enjoy this freeze for 5 years.
If you’re not a concession cardholder you will still enjoy a one year price freeze on PBS-listed medicine.
New listings on the PBS are also set to make treatments more affordable, including medications for cardiac disease, and a breast cancer medication that will see per treatment cost cut from about $100,000 to $31.60.
Housing
The government is committing $423 million over five years to boost social housing and homelessness services, as well as providing loans to build social and affordable homes.
There are no structural changes to the housing market that would alleviate the constant renter fear of frequent rent rises.
Separately, there is $2.2 billion in new aged care funding including 24,000 new home care packages and measures to improve systems to allow people to stay in their own homes. This should shorten wait times.
Small Businesses
Small businesses will receive a $325 energy rebate and an extension of the instant asset write-off scheme.
Motorists
The government is investing in road safety and infrastructure, with funding for the Roads to Recovery and Black Spot programs to progressively increase to $1bn and $150m respectively by 2033-34.
Overseas Travellers
Disorganised and last-minute spontaneous travellers will appreciate the new fast-track passport processing option, which promises a five-day turnaround for an additional fee of $100. It’s important to note, the government already offers a two-day turnaround ‘priority processing’ option which costs $252.
Sweet Potato Lovers
On a lighter note, sweet potato aficionados may see lower prices thanks to a cut in the agricultural levy on sweet potatoes.
Unfortunately, it wasn’t all good news. Image Credit: Shutterstock
Now, of course, it wouldn't be a budget without some ‘losers’ too.
Medicare rebates
Patients with Medicare cards will also need to get in quick to claim Medicare rebates, as the time to lodge a bulk bill claim has been cut from two years to one year.
Fraudsters
$67.5 million will be spent to combat scams and online fraud, with new industry codes to be enforced.
NDIS recipients and providers
The National Disability Insurance Scheme (NDIS) faces $14 billion in ‘savings measures’, raising concerns about the impact on recipients and providers.
The government also plans to enhance fraud detection within the NDIS.
The Verdict
So there you have it – the winners and losers of the 2024 federal budget. Like any budget, your view of it likely depends on which side of the ledger you land on.
Will the cost of living measures be enough to ease the squeeze on households? Do you think the tax cuts stimulate the economy or just line the pockets of the well-off? Will struggling Australians be drowned out by the political spin?
Only time will tell, but one thing's for sure: this budget is just the opening salvo in the lead-up to next year's election. Expect to see the government spruiking its ‘responsible and targeted’ measures while the opposition slams it as a ‘missed opportunity’ that doesn't go far enough.
In fact, the shadow treasurer, Angus Taylor, already described cost-of-living measures as ‘a Band-Aid on a bullet wound’. The Greens leader, Adam Bandt, also labelled cost-of-living relief ‘Band-Aid measures’.
That’s all for now, but we’ll be sure to keep you informed of any new updates as they arise.
In the meantime, we'd love to hear your thoughts on the budget.
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