The Australian government will be unveiling the 2024-25 federal budget on May 14, and there are sure to be plenty of predictions about tax cuts, deficits, surpluses, and winners and losers — but what does it all mean for YOU? How will young people be impacted by the Australian federal budget of 2024-25?
In the lead-up to budget night, it’s uncertain exactly what is going to be included in it, and how it will affect the nation. Until Treasurer Jim Chalmers delivered it, all we could do was speculate.
Chalmers has handed down his budget, with cost of living relief at the front of mind – thank god! It’s the first back-to-back surplus budget since the global financial crisis in 2007-08, but even though we’re in the green right now, deficits over the next two years are projected to be worse.
One of the key challenges the Albanese government has had to juggle in this budget is providing cost-of-living relief while not adding upward pressure to inflation.
Here’s what is in the 2024-25 Australian federal budget, and how it will affect young people — that’s you!
Cost of living relief
Reworked Stage 3 tax cuts will see every taxpayer in Australia receive a tax cut. People earning between $45,000 and $135,000 will receive a tax cut between $804 and $3,729 in July.
One of the first key takeaways is that Jobseeker’s higher rate has been boosted by $54.90 per fortnight, which comes down to $3.92 per day. Notably, that number is $13 less than what the government was told by experts to increase it by — but it’s also a dollar more per day than it was increased by last year!
The Medicare levy low-income threshold has been increased, meaning low-income taxpayers will be exempt or pay a reduced Medicare levy rate.
There will be a 12-month inquiry into the supermarket sector to address the cost of food — Coles and Woolworths are shaking!
Additionally, the government has committed $3 billion to make medications cheaper and freeze the maximum cost of PBS prescriptions meaning the maximum a script will cost you is $31.60 for non-concession card holders and a maximum of $7.70 for pensioner or concession cardholders.
Energy Bill Relief
The headline-making cost of living offering in this budget is a $300 rebate to every single Australian household on their power bills.
It’s not means-tested. Rightly or wrongly, it’s everyone. (Yes, even the rich listers.)
From July, all households will have a $300 credit automatically applied to their electricity bills, while eligible small businesses will receive a $325 rebate.
It will cost $3.5 billion and is the centrepiece of Labor’s ‘cost of living’ budget.
Endometriosis under Medicare
The government pledged that $49.1 million would go toward women and people with endometriosis and other complex gynaecological conditions.
In huge news for women and people who deal with endometriosis, longer specialist consultations will be covered under Medicare by July 2025.
People dealing with conditions like chronic pelvic pain and polycystic ovary syndrome will also be included.
All up, it’s expected to provide 430,000 more services to women/people across the country.
Fighting domestic violence
We’ve seen a string of DV-related incidents in 2024, so it’s no wonder the government is spending big to try and counteract it.
A $925.2 million package called the Leaving Violence Program will offer people leaving abusive relationships up to $5,000 in financial support and is fully funded for the next five years.
“Violence against women is a national shame – and it requires national action,” Chalmers said.
Future Made in Australia
This one is a biggie for anyone who cares about the future – AKA all of us!
The government is investing $22.7 billion over the next decade on what it’s calling “a Future Made in Australia.” Essentially it plans to attract investment, making Australia a renewable powerhouse and supporting Australian innovation.
The budget will see $209.3 million go to regions that have powered Australia to get the benefits of “the net zero transformation.”
A respectable $178.6 million will go towards supporting workers transitioning through programs like the Energy Industry Jobs Plan and place-based Regional Workforce Transition Plans which will reflect the voices of communities, workers, and employers.
Rent assistance and housing
$6.2 billion has been committed to address Australia’s housing crisis. This will see 40,000 new social and affordable homes built through the National Housing Accord and the Housing Australia Future Fund.
There’ll also be $1 billion going to states and territories to deliver new housing to connect services like sewerage and roads to new housing projects on top of the 4,000 new and refurbished social homes through the Social Housing Accelerator.
There will also be 20,000 new fee-free TAFE places in construction courses and pre-apprenticeship programs to help get the homes built, plus $1.9 billion in concessional loans to boost the delivery of social and affordable homes.
Renters on Commonwealth Rent Assistance will see an increase of 10 percent which will help around 1 million renters through $1.9 billion to support renters, and $1 billion will go towards social housing for young people and women fleeing violence.
The government is trying to reduce pressure on the private rental market by working with universities to increase their supply of student accommodation and if they don’t, they’ll cap the number of international students universities can enrol.
Changes to indexation on HECS
The government announced it would be wiping over $3 billion in student HECS debt by matching indexation with whatever is lower out of the consumer price index or the wage price index.
Student nurses, teachers, and social workers will now get payments during their compulsory work placements receiving $319.50 per week for the duration of their placement and helping reduce the shortage these sectors are facing.
It also announced it would be investing $88.8 million into Fee-Free TAFE places to help more students get access to courses and pre-apprenticeship programs, and $350.3 million for FEE-FREE Uni Ready courses.
“It shouldn’t matter whether you live in the suburbs or the regions, whether your parents are rich or poor, whether you were born with disability or grew up with disadvantage, whether you’re a First Nations Australian or a first-generation Australian,“ Chalmers said.
“The chance and the choice to go to university or TAFE should not be out of reach.”
