Renters on Commonwealth assistance will receive an average boost of $20 more a fortnight as federal Labor introduce a suite of measures to ease pressures during the cost-of-living crisis.
Commonwealth Rent Assistance will increase by 10 per cent on September 20, as federal Labor announced more cost-of-living policies, which come after the Australian Bureau of Statistics reported annual inflation fell from 3.8 per cent in June to 3.5 per cent in July.
Treasurer Jim Chalmers conceded on Thursday that inflation needed to “fall further and faster” as the population’s daily living expenses continue to strain household budgets.
Treasurer Jim Chalmers.Credit: Alex Ellinghausen
In addition to rent assistance, there will be an increased range of medicines dispensed for 60 days, an increase to JobSeeker for single recipients who have an assessed partial capacity to work less than 15 hours per week and support payments will be indexed.
Commonwealth Rent Assistance is available to anyone on the government support payments including the age pension, JobSeeker, the family tax benefit or ABSTUDY.
Rent assistance was increased by 15 per cent in May this year, which was the first real rise in more than three decades. The further 10 per cent increase from September 20 means recipients will get on average $20 more as the exact amount depends on individual circumstances.
For example, a single person on an income support payment who is paying at least $396 a fortnight in rent originally received $188 a fortnight but will now receive $207.
A couple with one or two children on the family tax benefit paying at least $578 a fortnight in rent would originally receive $221 a fortnight; they will now receive $243.
Chalmers said in a statement the measure would not add to inflation as the government would continue working towards the target range of 2 to 3 per cent.
“Treasury estimates the government’s energy bill relief and additional increase to Commonwealth Rent Assistance will directly reduce inflation by half of a percentage point in 2024-25 and are not expected to add to broader inflationary pressures,” he said.
“We know there’s more to do in the fight against inflation because people are doing it tough and that’s why we’re rolling out more responsible cost of living relief from September at the same time as we turn big Liberal deficits into Labor surpluses.”
From Sunday, a third group of medicines will be available as 60-day prescriptions to reduce the number of times people need to see their doctors.
It includes medicines that treat acne, anxiety disorders, asthma, constipation, depression, gastro and Parkinson’s disease.
Health Minister Mark Butler first announced extending prescriptions from 30 to 60 days in last year’s federal budget, which triggered months of tension with pharmacy owners who would lose income from dispensing fees under the scheme. Labor struck a $3 billion deal with the industry in March.
In a statement, Prime Minister Anthony Albanese said the measures would deliver real cost of living relief while Australians were financially struggling.
“This is real cost of living relief, putting more money back into people’s hip pockets,” he said.
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