Personal income tax cuts are set to take place on July 1, 2024

As previously stated, the government has approved permanent tax cuts for all Australian taxpayers from July 1, 2024.

Compared to the earlier Stage 3 plan, the new tax cuts focus on people with taxable incomes of less than $150,000.

Low-income Medicare levy thresholds will increase from July 1, 2023

The Medicare levy low-income criteria will be raised for individuals, families, seniors, and retirees beginning July 1, 2023.

Medicare’s low income thresholdThreshold as of 30 June 2023.Threshold from July 1, 2023. 

Medicare low-income threshold	Threshold as at 30 June 2023	Threshold from 1 July 2023
Singles	$24,276	$26,000
Families	$40,939	$43,846
Single – seniors and pensioners	$38,365	$41,089
Family – seniors and pensioners	$53,406	$57,198
Family – for each dependent child or student	$3,760	$4,027

The adjustments in the criteria account for recent CPI fluctuations, ensuring that low-income households remain exempt from the Medicare charge. 

 

Households get $300 in energy relief starting July 1, 2024.

Households will get a $300 credit on their energy costs, credited in automated quarterly instalments until 2024-25.

Eligible small companies will also get a $325 credit for energy costs.

The plan, which will cost $3.5 billion over three years beginning in 2023-24, extends and increases the Energy Bill Relief Fund. 

Capping indexation of HELP debts from loan accounts as of June 1, 2023.

As previously stated, the government will restrict the HELP indexation rate at the lesser of the CPI or the Wage Price Index (WPI) beginning June 1, 2023. The changes will affect all HELP, VET Student Loans, Australian Apprenticeship assistance Loans, and other student assistance loan accounts that existed on June 1, 2023.

Changing the computation of HELP indexation from 1 June 2023 reduces the indexation rate from：

• 7.1% to 3.2% in 2023 and 
• 4.7% to roughly 4% in 2024

The measure addresses a problem that more than 3 million Australians with HELP debt faced when the CPI indexation rate soared to 7.1% last year.

An person with an average HELP debt of $26,500 will have around $1,200 deducted from their outstanding HELP loans this year, pending legislation. 

 

Estimated indexation for HELP debts

HELP debt at 30 June 2023	Total estimated credit for 2023 and 2024*
$15,000	$670
$25,000	$1,120
$30,000	$1,345
$35,000	$1,570
$40,000	$1,795
$45,000	$2,020
$50,000	$2,245
$60,000	$2,690
$100,000	$4,485
$130,000	$5,835

*The actual amount of credit will depend on each person’s situation, such as how much they pay back each year. A refund will be given for all HELP bills that were indexed in 2023 and will be indexed again on June 1, 2024.

 

Superannuation for paid parental leave begins on July 1, 2025

As previously stated, Superannuation will be paid on Paid Parental Leave payments beginning July 1, 2025.

Eligible parents will receive an extra payment equal to the superannuation guarantee (12% of their PPL payments) as a contribution to their superannuation fund.

This payment is in addition to the changes that provided families with an additional two weeks of leave (22 weeks total), which will increase to 24 weeks in July 2025 and 26 weeks in July 2026 (see Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, Royal Assent 20 March 2024). 

 

Increased Commonwealth rent assistance starting September 20, 2024.

Commonwealth rent assistance maximum rates will rise by 10% beginning September 20, 2024.

Recipients of Centrelink/Department of Veterans Affairs payments, as well as those receiving family tax benefits, may be eligible for rent assistance if they make rent or other rent-like payments that exceed a certain monthly threshold.

The current maximum fortnightly rate is $188.20 for an individual and $177.20 for a pair.

The policy will cost $1.9 billion over five years from 2023-24 (and $0.5 billion each year from 2028-29), and it builds on a 15% hike in September 2023, raising maximum rates more than 40% above those in May 2022. 

 

Improving aged care support

The government will allocate $2.2 billion over the next five years to undertake essential aged care reforms and continue to execute the Royal Commission’s recommendations on Aged Care Quality and Safety.

This money will enable the distribution of an extra 24,100 home care packages in 2024-25.

The government has also decided to postpone the implementation of the new Aged Care Act until July 1, 2025.

The government is actively examining and implementing reforms to how elderly care is paid in response to the Royal Commission into elderly Care Quality and Safety findings, which was delivered in 2021.

This is expected to have an influence on future home and residential care costs. In general, previous reforms have resulted in current residents and home care users being ‘grandfathered’ under the laws in place at the time of entry. 

 

Increased flexibility for carer payments from 20 March 2025

Currently, to get the Centrelink Carer Payment, the carer must not work, study, or train for more than 25 hours per week. This reflects the condition that in order to get this reimbursement, the carer must provide ‘continuous care’ to the care recipient.

From March 20, 2025, the current 25 hours per week will be increased to 100 hours across four weeks.

This restriction will no longer include school, volunteering, or travel time and will solely apply to work.

Additionally, 

• Carer Payment clients who exceed their participation limit or temporary cessation of care days will have their payments suspended for up to six months rather than being terminated. 
• 
  Recipients will also be allowed to utilise a single temporary suspension of care day if they exceed their participation limit, rather than the existing seven-day requirement.

 

Higher JobSeeker rate for partial capacity to work starting 20 September 2024

Beginning 30 September 2024, the government will expand eligibility for the present higher rate of JobSeeker payment to single beneficiaries with a partial ability to work (zero to 14 hours per week).

Currently, persons on JobSeeker payments who are 55 or older and have been on them for nine months in a row get a higher rate of payment. They are:

Relationship status	Maximum payment per fortnight
Single with no children	$762.70
Single with dependent children	$816.90
Single 55 or older after 9 continuous months of payments	$816.90
Partnered (Each)	$698.30

Freezing Social Security deeming rates Duration: 12 months till 30 June 2025.

Instead of examining the actual income from financial assets, Centrelink and Department of Veterans Affairs payments are calculated using a presumed rate of return based on the overall amount of these investments. Bank accounts, term deposits, stocks, and managed funds are some popular types of financial investments.

The Government wants to freeze the deeming rates (listed below) until July 1, 2025.

Deeming rate	Single	Pensioner Couple
0.25%	Up to $60,400	Up to $100,200
2.25%	Amounts over $60,400	Amounts over $100,200

Co-payments under the Pharmaceutical Benefits Scheme, From January 1, 2024.

The government will keep the cost of medications low by freezing indexation:

• PBS general co-payments will not be indexed between January 1, 2025 and December 31, 2025 (inclusive), with indexation resumed on January 1, 2026.
• PBS concessional co-payments will not be indexed between January 1, 2025 and December 31, 2029 (inclusive), with indexation returning on January 1, 2030.

The $1 optional discount offered on patient co-payments for subsidised medications will be lowered annually by the corresponding notional indexation amount until the $1 discount is zero.

Starting January 1, 2024, you may pay up to $31.60 for most PBS drugs, or $7.70 if you have a concession card. The remainder of the expenditure is covered by the Australian government. 

 

The federal, state, and territory governments concentrate on housing

Housing programmes target three important areas:

• The government aims to create 1.2 million houses by the end of the decade, focusing on private commercial development. The Budget for 2023-24 highlighted additional initiatives to boost housing investment and development, notably build-to-rent buildings with affordable housing options. However, Treasury has just lately produced the draft law that would enable the previously stated incentives. It is impossible to entice large-scale investment unless you follow through on legislation that gives assurance. There have been no additional measures announced to yet. 
• The 2023-24 Budget prioritises supporting first-time home purchasers by allocating $5.5 billion over a decade to the Help to Buy initiative. There have been no additional incentives revealed to yet. 
• The government has allocated $1 billion to provide crisis and transitional housing for women, children, and teens escaping domestic abuse. This policy comes on top of the 15% increase in Commonwealth Rent Assistance in the 2023-24 Budget.
  

As previously stated, most of the Budget money goes to the states and territories to enhance housing stock, social housing, and crisis accommodation. New measurements include: 

• States and territories will receive $1 billion to build infrastructure, including roads, sewers, energy, water, and community facilities. 
• A new $9.3 billion National Agreement on Social Housing and Homelessness will help combat homelessness, provide crisis support, and repair social housing. This includes tripling Commonwealth funding for homelessness to $400 million per year, which will be matched by states and territories. 

 

Domestic violence, From mid-2025

As previously stated, the government has allocated over $1 billion over five years to permanently create the Leaving abuse Programme, ensuring that persons fleeing abuse get financial assistance, safety assessments, and referrals to support networks. Those who qualify will be able to get up to $5,000 in financial assistance, as well as referral services, risk assessments, and safety plans.