The May 24 Federal Budget WITHOUT the BS

May 15, 2024

 Every year I write a 'Budget without the BS'. It's the highlights of the Australian Federal Budget and what they mean for YOU without the political spin or media clickbait.

But before we get into that, let's start with my thoughts on the budget.

If I was to describe the budget, it would be the people-pleaser budget that probably isn't going to please many people. It's the budget of a government about to call an election within 12 months who is trying to dance with everyone and ending up not really dancing with anyone.

One of the things Michelle Bullock, the Reserve Bank Governor will be looking at with wide eyed wonderment? The tax cuts that will take effect 1 July which now will mean we all have more $$ in our pockets. One economist has likened these tax cuts to four interest rate cuts and while I can't see that's true, I do see the problem. If we start spending all those tax cuts, we might face unwanted inflationary pressures that see either rates higher longer or an unwanted rate increase rather than a rate cut in our future.

With that said, what's in it and what does it mean for your bank account? I've split up the spending into different groups so you can see what's relevant and overlook what isn't.

Mel x

Students and Young Australians

💰Many things contained in the budget are leaked beforehand and the HELP changes are no exception. HELP debt indexation from the 2023 financial year will be the lower of the consumer price index or the wage price index. The average saving is expected to be $1,200.

💰Eligible nursing, widwifery, teaching and social work students to receive $319.50 a week while they complete mandatory work placements.

💰20,000 fee-free TAFE training courses for the construction sector.

Low income & pensioners

💰Rent Assistance rates to be increased by 10% from September 2024

💰Concession-card holders and pensioners will have the price of a script frozen at $7.70 for 5 years

 💰Around 450,000 age pensioners will avoid cuts to payments as the age pension deeming freeze is being extended at 2.25% for another year instead of moving in line with the RBA cash rate.

Everyone

💰All Australian taxpayers will get a tax cut, averaging $36 a week (or $1,888 a year) under the stage 3 plan starting 1 July. Middle-income earners will be up to $804 better off, but higher income earners will get $4,546 less than the cuts announced in 2019 by the Coalition government.

💰$300 energy bill rebate over the course of the year.

💰The price of Pharmaceutical Benefits Scheme scripts will be frozen at $31.60.

Aged Care & Child Care Workers

💰Planned government funded pay rises for aged care and child care workers. No details released but they are estimated to start from the 2025 financial year.

New Parents

💰Superannuation will be paid on the 20 weeks of government funded parental leave from July next year. Parents of babies born after 1 July, 2025 will receive 12% superannuation.

Domestic Violence Payments

💰Another measure that was released some weeks ago, the Leaving Violence Program is due to commence in mid-2025 and provides up to $5,000 of support (including $1,500 in cash and up to $3,500 vouchers for goods and services).

 

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