Budget 2024: Jim Chalmers unveils $300 energy rebates for 10 million households
Most of the government’s $7.8bn in cost of living relief, including a $300 energy rebate, will be paid out during the election year.
Every household will receive a $300 energy bill rebate from July in a major expansion of the Albanese government’s key cost-of-living relief measure, while renters receiving commonwealth assistance will be $70 better off per fortnight compared to two years ago.
Jim Chalmers unveiled $7.8bn in new cost-of-living relief measures in his third budget, with the bulk of that – $3.3bn – to be paid out in the 2024-25 election year just as Australians start receiving $23bn in tax cuts.
Energy bill relief
The Treasurer said “just as every Australian taxpayer will get a tax cut, every Australian household will get energy price relief”, with the $300 rebates to be paid quarterly over the year.
That means 10 million households should expect to receive $75 off their bills every three months.
About one million small businesses will also be handed $325 rebates paid across 2024-25. The federal election is due by May next year. Dr Chalmers said the $3.5bn energy relief package would “keep the lights on for families and businesses” while keeping downward pressure on inflation.
The package is a significant extension of last year’s energy rebates, which were targeted at low-income Australians.
$1.9 billion increase in rent assistance
The second-largest new cost-of-living measure in the budget was a 10 per cent increase to the maximum rate of Commonwealth Rent Assistance, costing the government $1.9bn over four years from 2023-24. It is the second year in a row rental assistance has been lifted, marking the first back-to-back increase to the payment outside of indexation changes in three decades.
Nearly one million households are expected to benefit, with some renters $70 better off per fortnight compared to May 2022. Maximum Commonwealth Rent Assistance rates will be 40 per cent higher than two years ago.
The budget papers estimate the energy bill relief combined with the Commonwealth Rent Assistance will reduce headline inflation by 0.5 per cent in 2024-25 and won’t add to broader inflationary pressures.
“This is a responsible and restrained budget which eases cost-of-living pressures,” Anthony Albanese and Dr Chalmers said. “It provides a tax cut for every taxpayer and new help with energy bills, rent and the cost of medicines.”
Additional cost-of-living relief announcements
The $7.8bn cost-of-living package also includes:
● Cheaper medicines as part of a new community pharmacy agreement worth up to $3bn.
● Waiving $3bn in student debt for more than three million Australians.
● $1.1bn to pay superannuation on government-funded Paid Parental Leave.
● Extending the freeze on deeming rates for 876,000 income support recipients.
● Paid placements for 73,000 student nurses, teachers and social workers, who will receive $319.50 per week while undertaking mandatory placements.
The measures will come on top of the government’s revamped stage-three tax cuts for 13.6 million taxpayers announced earlier this year, which is at the centre of Labor’s budget.
For a family on a combined income of about $130,000 – with one partner earning $80,000 and the other $50,000 – their combined tax cut will be more than $2600 a year, or about $50 a week.
Under the eighth Community Pharmacy Agreement, a one-year freeze will be applied to the maximum Pharmaceutical Benefits Scheme patient co-payment for everyone with a Medicare card, while pensioners and other concession cardholders will receive a five-year freeze.
The change will ensure no pensioner or concession card holder will pay more than $7.70 (plus any applicable manufacturer premiums) for up to five years.
About 876,000 welfare recipients will benefit from the decision to freeze social security deeming rates for financial investments at their current levels until the end of June next year.
