Federal Budget 2024-25

Federal Budget 2024-25

Last updated: 15 May 2024

The Albanese Government has handed down its third Federal Budget. Treasurer Jim Chalmers announced a surplus for the second year running, with this year’s Budget containing measures to ease inflationary pressures, such as an extension to energy discounts, addressing the housing crisis, wiping student debt, cash boosts for renters and supporting women.

So, what exactly are these benefits? We have you covered with the key major changes in this year’s Federal Budget.

Energy - $300 energy rebate

You may have felt the pinch from a rise in electricity prices in the last year. The Budget aims to ease this pressure by delivering $3.5 billion in energy bill relief for all Australian households. What this means is that an annual rebate of $300 will be applied to every Australian household from the 1st of July, automatically applied to energy bills at a rate of $75 per quarter over the 2024-25 financial year.

Housing - $11 billion investment

The Government announced over $11 billion in funding will be invested to alleviate the housing crisis. $9.3 billion of this amount will be injected into the creation of social housing, whilst $1 billion will be set aside for crisis accommodation for domestic violence-affected Australians and housing infrastructure supply respectively. This will assist in reaching the Government’s target to build 1.2 million new homes by 2029.

HECS – student loan indexation relief

Last year, a 7.1% indexation was applied to student HECS debts which resulted in an unusually large increase to HECS amounts. The Federal Budget aims to remediate this by wiping $3 billion worth of HECS debts for 3 million Australians through lowering the indexation to 3.2% and backdating it to last year. If you’ve got a HECS debt, this amount will be taken off your current debt and will save an average of $1,200, whilst those who have paid it off will receive the difference as part of their tax refund. 

Renters – cash boost

Asking rents have reportedly risen by more than 75% since the start of the pandemic, resulting in mounting financial struggles for Australian renters, even those with a good income. The Budget will invest $1.9 billion to increase the maximum rates of the Commonwealth Rent Assistance program by 10% which is currently paid to 1 million households across the Australian rental market.

Women – support for domestic violence victims

There is a large emphasis on supporting women, specifically those escaping domestic violence relationships. The Budget will commit $1 billion to support crisis and transitional accommodation for women, children and any other victims fleeing domestic violence. For those eligible, this will be a $5,000 amount spread across a $1,500 cash deposit and $3,500 for goods and services.

Superannuation – top up for new parents

One-third of the Australian gender pay gap is attributed towards women taking time off work to care for their families, which inevitably reduces pay and limits career progression opportunities. The Budget will be committing $1.1 billion to those on Commonwealth-funded Paid Parental Leave (PPL) and an ongoing $623 million each year to implement this scheme. What this means is that 180,000 Australian families will soon be paid superannuation on top of their paid parental leave, a pledge by the Federal Government to bridge the gender pay gap.

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