Budget boasts energy bill relief for every household, increase in rent assistance

Every Australian household will receive energy bill relief, and commonwealth rent assistance will increase, as the government announces its 2024-25 budget tonight with a focus on easing the country’s cost-of-living woes. 

While the fresh figures have not yet been released, last year’s budget made 5 million households eligible for up to $500 in power bill relief, while small businesses were eligible for up to $650.

The previous relief was only available to concession card holders, pensioners and veterans.

In tonight’s federal budget, Treasurer Jim Chalmers is set to deliver a $9.3 billion surplus for the current financial year ending in June. In nearly two decades, it is the second consecutive budget surplus.

But, the next three financial years are likely to bring higher deficits with the government blaming what it calls “unavoidable spending”.

The size of those deficits is unknown, but the December estimates were $18.8 billion, $35.1 billion and $19.5 billion, respectively.

The figures for the upcoming financial year, 2024-25, will be watched particularly closely in the context of inflation.

The government revealed on Sunday that Treasury had revised its inflation forecasts downwards but the Reserve Bank of Australia (RBA) last week predicted a rise in inflation for the rest of the year.

There have been budget announcements already, ahead of the full budget picture later tonight:

• Student debt changes: The federal government wants to change how tertiary education loans are indexed, proposing a backdated scheme that would reduce the amount debts increase by and see some students get refunds from what they paid last year
• Changes to the tax brackets: Dubbed the stage 3 tax cuts, and known about for months — won’t come into effect until July. Basically, Australia’s tax brackets will change slightly, as will tax rates, benefiting both lower and higher-income earners
• Emergency housing: $1 billion will be spent on crisis and transitional accommodation for women and children fleeing family violence and for youth through the National Housing Infrastructure Facility

Increase in Commonwealth rent assistance

Also announced in tonight’s budget will be an increase in Commonwealth rent assistance, a fortnightly supplement of up to $250 for welfare recipients who rent. There was also an increase in Commonwealth rent assistance last year.

The increase was a recommendation from the Economic Inclusion Advisory Committee, which was established in 2022 to provide annual pre-budget advice on the adequacy of welfare payments.