More reforms in 2024 federal budget to ‘balance cost of living’

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.


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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.
Key Takeaways
  • Treasurer Jim Chalmers hinted at further tax reform in the upcoming 2024 Federal Budget, which suggested a focus on balancing the cost of living pressures for Australians.
  • The Labor government adjusted the Stage 3 tax cuts to benefit middle and low-income earners, with various tax rate changes and possible additional adjustments.
  • To address the cost of living and contribute to economic inclusion, a suite of financial support measures, including welfare increases and energy bill rebates, is in the works.
  • Initiatives to support parental leave superannuation, and resources for women escaping violence, as well as possible gym membership tax deductions, may be part of the upcoming budget announcements.
What are your thoughts on the potential changes and benefits outlined above? Let us know in the comments below.
 
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Nothing for Pensioners again. Unemployed will be getting more than elderly can't believe it
 
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Reactions: Abby2
I (and my partner) are luckier than some people receiving pensions in that we have superannuation and investments. I receive a part pension, for which I am grateful.
We also have a mortgage that eats into those funds at great rate.
I know it’s a lot tougher for people who just rely on their pension only but these hard times are effecting all pensioners.
Albo, remember we pensioners have big numbers come Election time.
Fix it now.
You will not be getting my vote unless you do. I am sure I won’t be alone.
 
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Men need to escape domestic violence as well, but as usual nothing for them but $5000 for females. Bet there is a sudden increase of women leaving domestic violence when this comes out. The payment will only encourage them to leave when in effect nothing is happening at all in a lot of cases.
That was my first thought, what about the men? Nothing is mentioned about domestic violence inflicted on men by women, yet it does happen. Not to mention the social stigma if a man were to report it.

“95 percent of men and 80 percent of women who have experienced violence from a current partner have never contacted the police.”
www.saferresource.com.au
 
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So the women in a Domestic Violence with their partner can get $5,000 dollars that minute they leave their home and seek shelter from the abuse,and where is that they can go to,Albosleezy Labor government cannot even build homes for the homeless,no one has said who is in charge or control of the funds or the venues for them to seek refuge only that they are throwing taxpayers money in the air again
 
Domestic violence works against men too. So many women (especially younger women) lie and are believed instead of the matter being investigated. What's good for the goose is also good for the gander.
It's a case of "He said....She said" becoming "He said....She lied".

Been in such a case where I was jailed for defending myself by restraining an ex who planted a wooden dollhouse on top of my head, with the resulting wound bleeding profusely. Boys....don't put a woman who caused a significant injury, into a full nelson. You will accused of dislocating her shoulder when no such injury was apparent after medical intervention.
 
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Reactions: DLHM
WHAT is in the budget for the elderly pensioners and the disabled and carers who never seem to get a mention
why is that
why are the unemployed getting a %25 increase and the people who earnt a pension by working all their lives are once again forgotten
 
Everybody who is so worried about the unemployed 'unfairly' getting an increase can probably relax and pause their outrage. The Treasurer has made it as clear as he possibly can that it won't be happening. Bad luck for all the Seniors not quite old enough to get the Age Pension and not disabled enough to get DSP - looks like they will continue to get over $100 a week less than the rest of us.
 
I know several people who have quit their jobs due to them getting so much more jobseeker payment . The aged and disability pensions always seem to just get the smallest possible payments
.
 
I (and my partner) are luckier than some people receiving pensions in that we have superannuation and investments. I receive a part pension, for which I am grateful.
We also have a mortgage that eats into those funds at great rate.
I know it’s a lot tougher for people who just rely on their pension only but these hard times are effecting all pensioners.
Albo, remember we pensioners have big numbers come Election time.
Fix it now.
You will not be getting my vote unless you do. I am sure I won’t be alone.
WHO the hell voted them in, in the first place if there are soooo many of us, NOT ME that's for sure, BUT it was the ones on Jobseeker cause they knew as soon as kid from single parent house = big payment are a coming
 

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