When Federal Treasurer Jim Chalmers handed down the Albanese government’s 2024 budget last week it was touted as a ‘cost-of-living budget’, aimed at relieving the pressure of everyday costs.
Member for Farrer and Opposition Party Deputy Leader, Sussan Ley is concerned at the lack of money for the bush.
“My key concern is the $315 billion in new spending by Labor risks adding further to inflation and keeping interest rates higher for longer,” Ms Ley told The Riverine Grazier.
“The energy bill relief is welcome for those who need it, but as many economic commentators are saying, you just can’t subsidise your way out of the inflation challenge.
“Locally, road funding appears to be maintained but with construction timeframes pushed back, and while there are new housing and immigration targets, there is no realistic path to actually achieve them.
“Labor would love this Budget to feel like ‘trust us, we know what we’re doing’.
“The problem is that two years into government the vibe is wearing a bit thin and we’re all somewhat poorer for the experience.”
The budget is expected to deliver a surplus.
Here’s what will change for you, come July 1.
Stage 3 tax cuts – Every Australian wage earner earning over $18,200 will receive more wages in their pocket, after July 1.
The 19 per cent tax rate will be reduced to 16 percent, and the 32.5 per cent rate to 30 per cent. The income threshold above which the 37 per cent tax rate applies will increase from $120,000 earned per year, to $135,000.
In real terms, someone earning $50,000 per year will receive $929 more, or just under $18 per week.
For someone earning $100,000 per year the tax cuts will save $2,179 per year.
Energy rebate – Every Australian household will receive $300 energy rebates, paid quarterly. This means from July 1 you will see a $75 credit applied to your electricity bill, each quarter.
“This is about keeping the lights on for Australian families,” Mr Chalmers said.
Critics claim the lack of means testing means those wealthy Australians who don’t need bill support will also receive the same as someone on a low income.
Millionaire businessman Dick Smith has said publicly he will be donating his.
One million small businesses across Australia will receive $325 energy rebate, as a credit to their electricity account. Both rebates will occur automatically – there is no application process.
PBS medicine prices capped – The government has frozen the price of medicines under the Pharmaceutical Benefits Scheme (PBS) at $7.70 for pensioners and concession card holders and $31.60 for general public. The freeze will remain in place for five years for pensioners and concession card holders and two years for the rest of the country.
Rent assistance increase – The Commonwealth Rent Assistance program will increase by 10 per cent for those who receive the support payment, to help combat rising rent prices for those on lower incomes.
Phasing out of live sheep exports – Mr Chalmers announced a $107 million assistance package over five years to support the Australian sheep industry to transition away from live exports by May 2028.
NSW Farmers president Xavier Martin slammed the decision, calling it “drastically inadequate”.
However, the RSPCA has welcomed the move.
Future Made in Australia – The government announced a $22.7 billion Future Made in Australia program, with incentives for green hydrogen production, the efficient production of essential mineral and innovation in creating low carbon fuels.
This could have industrial ramifications for Hay and Balranald Shires, as the twin towns pursue opportunities in renewable energy, after the NSW government declared the region the South West Renewable Energy Zone (SW REZ).
In other spending announced last week, $2.8 billion will be rolled out to improve Services Australia (Centrelink), including additional staff to reduce backlogs, $2.2 billion will be spent on aged care and $1.6 billion on tertiary education.
This article appeared in The Riverine Grazier, 22 May 2024.