More reforms in 2024 federal budget to ‘balance cost of living’
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As the 2024 Federal Budget announcement looms, Treasurer Jim Chalmers has sparked conversations around further tax reforms that could ease the cost of living pressures for many Australians.
With the budget set to be unveiled in less than a week, the anticipation is palpable among those seeking financial relief from the government.
The Treasurer has hinted at tax reform in the housing sector, although he has clarified that it would be 'not the kind some people have been calling for'.
Housing remains a ‘major focus,’ but a delicate balance must be struck to ensure that the assistance provided doesn't counteract the hard-won progress in reducing inflation.
So, what can Australians expect from the upcoming budget?
From increased welfare benefits and the possibility of wiping HECS debt to energy rebates and additional cash boosts, let's delve into the potential financial relief that could be on the horizon.
Tax reform
The Labor government faced criticism over alterations to the Stage 3 tax cuts, initially perceived to favour the wealthy. However, these have been recalibrated to benefit middle and low-income earners more significantly.
Australian workers will notice a change in their take-home pay starting in July this year, but Chalmers has suggested that there may be more changes to come.
This could involve adjustments to marginal tax brackets or even their abolition, although the 37 per cent bracket was previously spared from such a fate.
‘In all of the budgets we’ve done so far, there has been modest but meaningful tax reform, and that’s because I believe in doing these in a sequenced and orderly and methodical way,’ Chalmers said.
‘People should expect to see more of that on Tuesday.’
For example, a person earning an average wage of $73,000 will see a tax cut of over $1,500 a year, while those earning $50,000 will gain an extra $929 annually.
The tax cuts also extend to higher earners, although the benefits for those earning $200,000 will be reduced from $9,075 to $4,500.
Welfare payments
The JobSeeker unemployment payment, which currently stands at $762.70 fortnightly, has been under scrutiny, with many arguing that it fails to keep pace with rising inflation.
The Treasurer has alluded to 'additional steps in the budget' to address this, potentially adopting some recommendations from the Economic Inclusion Advisory Committee, which has called for an increase to $1,004.67 per fortnight.
Energy bill lifeline
Anthony Albanese suggested that support for an energy bill lifeline might be extended in July. He talked about how helpful it was to spend $1.5 billion on emergency energy rebates before.
‘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 five million families,’ he said.
‘It helped people under pressure—and it helped fight inflation. And as we put together next month's budget, small businesses and families will again be front and centre in our thinking.’
Superannuation
In a move to support families, the government is proposing to pay superannuation on top of Paid Parental Leave (PPL), with the 12 per cent payments set to commence from July next year, contingent on Labor's re-election.
‘A stronger paid parental leave system is good for families and good for the economy as well,’ Chalmers said, adding that this will help women earn and save more in retirement.
Anti-domestic violence funding
The budget will also include financial support for women escaping violent relationships and measures to counter misogynistic views online.
This includes a $925 million package that provides $5,000 for women leaving violent or abusive situations, as well as legislation to ban the creation and distribution of deepfake pornography.
Free gym membership
Lastly, gym memberships and fitness activities could become tax-deductible for Australians following a recommendation from the fitness body AUSactive.
While the government has yet to respond to this proposal, it could be a welcome surprise in the upcoming budget.
What are your thoughts on the potential changes and benefits outlined above? Let us know in the comments below.
With the budget set to be unveiled in less than a week, the anticipation is palpable among those seeking financial relief from the government.
The Treasurer has hinted at tax reform in the housing sector, although he has clarified that it would be 'not the kind some people have been calling for'.
Housing remains a ‘major focus,’ but a delicate balance must be struck to ensure that the assistance provided doesn't counteract the hard-won progress in reducing inflation.
What should Australians expect from the 2024 federal budget? Credit: Shutterstock
So, what can Australians expect from the upcoming budget?
From increased welfare benefits and the possibility of wiping HECS debt to energy rebates and additional cash boosts, let's delve into the potential financial relief that could be on the horizon.
Tax reform
The Labor government faced criticism over alterations to the Stage 3 tax cuts, initially perceived to favour the wealthy. However, these have been recalibrated to benefit middle and low-income earners more significantly.
Australian workers will notice a change in their take-home pay starting in July this year, but Chalmers has suggested that there may be more changes to come.
This could involve adjustments to marginal tax brackets or even their abolition, although the 37 per cent bracket was previously spared from such a fate.
‘In all of the budgets we’ve done so far, there has been modest but meaningful tax reform, and that’s because I believe in doing these in a sequenced and orderly and methodical way,’ Chalmers said.
‘People should expect to see more of that on Tuesday.’
For example, a person earning an average wage of $73,000 will see a tax cut of over $1,500 a year, while those earning $50,000 will gain an extra $929 annually.
The tax cuts also extend to higher earners, although the benefits for those earning $200,000 will be reduced from $9,075 to $4,500.
Welfare payments
The JobSeeker unemployment payment, which currently stands at $762.70 fortnightly, has been under scrutiny, with many arguing that it fails to keep pace with rising inflation.
The Treasurer has alluded to 'additional steps in the budget' to address this, potentially adopting some recommendations from the Economic Inclusion Advisory Committee, which has called for an increase to $1,004.67 per fortnight.
Energy bill lifeline
Anthony Albanese suggested that support for an energy bill lifeline might be extended in July. He talked about how helpful it was to spend $1.5 billion on emergency energy rebates before.
‘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 five million families,’ he said.
‘It helped people under pressure—and it helped fight inflation. And as we put together next month's budget, small businesses and families will again be front and centre in our thinking.’
Superannuation
In a move to support families, the government is proposing to pay superannuation on top of Paid Parental Leave (PPL), with the 12 per cent payments set to commence from July next year, contingent on Labor's re-election.
‘A stronger paid parental leave system is good for families and good for the economy as well,’ Chalmers said, adding that this will help women earn and save more in retirement.
Anti-domestic violence funding
The budget will also include financial support for women escaping violent relationships and measures to counter misogynistic views online.
This includes a $925 million package that provides $5,000 for women leaving violent or abusive situations, as well as legislation to ban the creation and distribution of deepfake pornography.
Free gym membership
Lastly, gym memberships and fitness activities could become tax-deductible for Australians following a recommendation from the fitness body AUSactive.
While the government has yet to respond to this proposal, it could be a welcome surprise in the upcoming budget.
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