2024 Australian Federal Budget Impacts on: Families, Renters, FIFO Workers, and More

Jim Chalmers Federal Budget 2024

The 2024 Australian Federal Budget has dropped, and it’s packed with measures to help ease the cost of living, support renters, and give a boost to those nearing retirement. Whether you’re a busy family, a FIFO worker, or someone just trying to keep the lights on, here’s a breakdown of what this year’s budget means for you.

Families: Relief at Last!

Australian families reacting to federal budget

Energy Bill Relief: Families, rejoice! Starting from July 1, 2024, all Australian households will receive a $300 rebate on their energy bills. This $3.5 billion initiative is aimed at taking the sting out of those ever-increasing power costs​ (Lifehacker Australia)​​ (9News)​. So, you can keep the air con blasting during those scorching summer days without breaking the bank.

Tax Cuts: The new Stage 3 tax cuts mean more take-home pay for everyone. For a typical family with both parents working, you’re looking at an extra $36 a week in your pocket. That’s enough for a family pizza night – every week! The government has rejigged the tax brackets to give a more significant break to middle-income earners, which is great news for families juggling expenses​ (KPMG)​​ (9News)​.

Child Care Subsidy: Last year’s changes to the child care subsidy continue to benefit families, with increased payments making it more affordable to send the kids to day care while you work​ (Lifehacker Australia)​.

Renters: A Bit of Breathing Room

Renter impacts of federal budget

Increased Rent Assistance: If you’re relying on Commonwealth Rent Assistance, there’s good news. The maximum rate is increasing by 10%, which means a little extra help to cover those rising rent costs​ (9News)​​ (Property Inc)​.

Affordable Housing Initiatives: The government is also investing $6.2 billion to build 40,000 new social and affordable homes. This should help ease the housing shortage and make it easier to find a place that fits your budget​ (KPMG)​​ (Property Inc)​.

High Tax Individuals and FIFO Workers: More Money in Your Pocket

FIFO miners set to benefit from budget

Tax Cuts: The Stage 3 tax cuts aren’t just for middle-income earners. High-income earners, including FIFO workers and miners, will see significant reductions in their tax liabilities. For example, someone earning $200,000 a year will save around $4,529 on their tax bill. That’s a hefty chunk of change back in your wallet​ (KPMG)​​ (9News)​.

Energy Bill Relief: Don’t forget, you’ll also benefit from the $300 energy bill rebate. It’s a small but welcome relief on top of those tax cuts​ (Lifehacker Australia)​.

Those Approaching Retirement: Planning Ahead

Retirees impact of budget

Aged Care Improvements: With $2.2 billion earmarked for aged care improvements, those nearing retirement can expect better services and support. This includes reforms aimed at making aged care more accessible and higher quality​ (KPMG)​.

Superannuation and Retirement Savings: Although not a headline grabber in this year’s budget, the ongoing focus on superannuation reforms and the steady approach to indexing pensions means that your retirement savings should go further​ (Budget 2024-25)​.

Medicare and Health Services: The budget also commits $2.8 billion to strengthen Medicare, ensuring better access to health services as you age. This includes a freeze on the Pharmaceutical Benefits Scheme (PBS) co-payment, which keeps prescription costs stable​ (9News)​.

How the Budget Impacts Women

How women benefit

The 2024 Federal Budget includes several initiatives that will have significant positive effects on women across various stages of life, particularly in terms of financial support, healthcare, and housing.

Financial Support

Rent Assistance and Social Support: Women, particularly those who are single, recently divorced, or renting, will benefit from the increased rent assistance. The budget raises the maximum rate of Commonwealth Rent Assistance by 10%, providing crucial support to those struggling with high rental costs​ (9News)​​ (Property Inc)​. Additionally, the allocation of $2.2 billion to improve aged care will offer better support for older women, ensuring they receive the care they need as they age​ (KPMG)​.

Tax Cuts: The Stage 3 tax cuts mean more take-home pay for women in the workforce. These tax cuts will be especially beneficial for women rebuilding their finances after significant life changes, such as divorce. The new tax structure is designed to provide relief to low and middle-income earners, putting more money back into the pockets of many Australian women​ (KPMG)​​ (9News)​.

Healthcare and Social Services

Improved Healthcare Access: The budget commits $2.8 billion to strengthen Medicare, ensuring better access to health services for women. This includes freezing the Pharmaceutical Benefits Scheme (PBS) co-payment, which will keep prescription costs stable, making healthcare more affordable for all women​ (9News)​.

Support for Vulnerable Women: Specific measures in the budget address the needs of vulnerable women, including those escaping domestic violence. The government has introduced a new $5,000 emergency support payment to assist women seeking to leave violent situations, providing crucial financial assistance during critical times​ (Budget 2024-25)​.

Housing and Retirement

Affordable Housing Initiatives: With a $6.2 billion investment in social and affordable housing, the government aims to ease the housing crisis. This initiative will help women, particularly single mothers and older women, find stable and affordable housing options​ (Property Inc)​.

Retirement and Aged Care: For women approaching retirement, the budget’s focus on improving aged care services is vital. The $2.2 billion allocated for aged care reforms ensures that women receive quality care and support as they age, addressing long-term concerns about aged care facilities and services​ (KPMG)​​ (Budget 2024-25)​.

Final Thoughts

The 2024 Federal Budget is packed with measures aimed at easing cost-of-living pressures across the board. Whether it’s through tax cuts, rent assistance, or targeted support for families and older Australians, there’s a little something for everyone. And while it might not solve all our problems, it certainly helps lighten the load.

For a deeper dive into all the budget details, check out the official budget documents and stay informed on how these changes will roll out over the next year.

So, next time you’re sipping your morning coffee, remember there’s a bit more financial sunshine on the horizon. If you want to bring that horizon forward or start building a brighter future talk to our team for your no-obligation discovery session with one of our strategists.

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