Rodney Stevens
Treasurer Jim Chalmers handed down the Albanese Government’s 2024-2025 budget last Tuesday week, set to deliver a predicted $9.3 billion surplus and cost-of-living relief designed not to aggravate inflation.
Federal Member for Page, Kevin Hogan slammed the budget, saying increased spending by Labor will keep inflation and interest rates higher for longer, while Mr Chalmers clamed Australia was among the “best placed economies to manage these uncertainties and maximise our opportunities”.
Key cost-of-living relief measures for families include a $300 energy rebate for all households and the government’s stage 3 tax cuts which will see the average taxpayer paying $36 less per week.
Small business hasn’t been forgotten in the energy rebate, with part of the $3.5 billion scheme set to include a $325 rebate for about one million eligible small businesses, plus the $20,000 instant asset write-off, which was to end on June 30 this year has been extended for another 12 months.
Freezing deeming rates at current levels until June 30, 2025, is estimated to assist about 450,000 pensioners and 876,000 income support recipients, with the cost of medications listed on the Pharmaceutical Benefits Scheme capped at $31.60 for the next year, and prescription costs for pensioners and concession card holders remaining at $7.70 for the next five years.
People on low incomes who receive Commonwealth Rent Assistance will see a boost to rates by 10 per-cent from September 20, after the government set aside $1.9 billion for rent assistance.
Women will benefit by receiving superannuation while on paid parental leave, which the government estimates will cost $1.1 billion over the next four years, plus the government is increasing its investment in women’s shelters to help those fleeing domestic violence and providing eligible women who are fleeing up to $5000 in financial support through the Leaving Violence Program.
To give Australians improved access to mental health services, the budget has committed $888.1 million over eight years.
Additionally, the government has flagged a network of walk-in Medicare Mental Health Centres for people with moderate to severe mental health needs, which they say will be open by June 30, 2026.
About $3 billion in debt for about 3 million university graduates and students will be wiped clear, as the way higher education debt interest is indexed will be tied to whichever is lowest out of the CPI or the wage price index, and the change will be backdated.
Plus, about 73,000 university and Vocational Education and Training students will receive a $320 a week placement payment to support them completing placements for qualifications including teaching and nursing, starting from July 1, 2025.
To address the chronic tradie crisis in the construction sector there will be an additional 20,000 fee-free TAFE places for apprenticeships offered.
Last Thursday, Mr Hogan said the average Australian family was $35,000 a year worse off than they were two-years-ago and over $20,000 of that was increased mortgage costs because of higher interest rates.
He said housing costs have increased by 12 per-cent, rents are up 12 per-cent, insurance was up 26 per-cent, electricity was up 18 per-cent, gas was up 25 per-cent.
“The main thing that has made the cost of living higher for an Australian family is interest rates,” Mr Hogan told the parliament.
“Every economist who has been commenting on the budget this week has been saying ‘oh oh, danger’ because of the government’s prolific spending.
“A lot of the economists are saying there’s a lot of danger in the budget because their increased spending, they’re spending $300 billion a year more than we were when we were in government, is potentially going to put inflationary pressure on.
“That means interest rates aren’t going to come down.”
Mr Hogan said the Labor party had nothing to be proud of about the budget and how it deals with cost-of-living issues.