Australia's Channel 9 News reported on April 23 that there are only three weeks left before the date of the Federal Budget announcement by Treasurer Jim Chalmers, who has repeatedly stressed that "there will be no big cash outlays in the budget, it's as simple as that."
However, given that the cost of living is still prominent, the new budget is expected to include a series of measures to ease the economic pressure on the people, such as the third phase of tax cuts.
The new round of Budget will be announced on May 14, and here's what you need to know:
*Phase 3 Tax Reduction Reform*
The government's signature tax policy will be key to this year's Budget.
The policy was announced in January and passed into legislation the following month. The policy changes the previous government's third phase of tax cuts to benefit more low- and middle-income groups, but high-income earners will also benefit.
It lowers the minimum two tax rates and raises the threshold of the top two levels, which not only alleviates the pressure on the cost of living of the people, but also alleviates the problem of creep in the tax bracket to a certain extent.
(Photo source: Australian Channel 9 News)
The new policy will go into effect on July 1 and all taxpayers will receive relief. People with an average income of about $73,000 will receive a $1,504 tax deduction, depending on how much they earn:
(Photo source: Australian Channel 9 News)
The cost of the new deal is expected to remain the same as before, at $105.7 billion by 2027-28.
*Paid Parental Leave Pension*
Under another policy that has already been announced, the government has promised to pay pensions during paid parental leave, with the new policy coming into effect on July 1, 2025. The exact cost is not yet known.
*Student Loan Forgiveness*
At this time, the government has not disclosed any relevant information, but some form of relief may be provided to students with HECS-HELP debt.
On 18 April, Prime Minister Anthony Albanese said: "I think we need to do better for the younger generation in a number of areas, and HECS reform is one of them. ”
"We have received a review report...... That is, the system could be simpler and fairer. We are reviewing these proposals and will make a statement soon. “
财长Jim Chalmers（图片来源：澳洲九号台新闻）
Chalmers also hinted: "We are considering a number of student assistance measures for the upcoming new round of Budget, including HECS student loan forgiveness and appropriate subsidies for graduates in the internship stage, which are our current priorities. ”
"As the Prime Minister said last week, we do acknowledge that students are under pressure and if we are in a position to help, which is obviously something that we will consider when finalising the Budget. ”
The specific package for the relief is unclear, but it may involve rebalancing the index of student loans.
As it stands, it will be raised on June 1 of each year in line with inflation. While indexation adjustments are unlikely to be canceled, they may be changed.
*Energy Bill Reduction*
In addition, the government also hinted that energy bill relief will continue to be provided in this year's Budget.
总理Anthony Albanese（图片来源：澳洲九号台新闻）
On April 4, Albanese spoke about the energy subsidy policy introduced in Budget 2023-24, which provides up to $500 in electricity bill relief for eligible households and $650 in electricity bill relief for eligible small businesses.
"Our government understands that energy bills are still a source of financial stress for small businesses and Australian households, but this policy has made a positive difference," he said. ”
"As we make next month's budget, small businesses and families will once again be at the forefront of our minds. ”