What We're Doing

As of the Monthly Consumer Price Index released on 10 January 2024, the indicator reveals a moderation in inflation to 4.3 percent in the 12 months to November 2023, down from 4.9 percent in October. These encouraging figures signify progress in our ongoing efforts to tackle inflation challenges. It is worth noting that the policies implemented by the Government have played a role in this positive trend. While we believe that inflation has peaked and the worst is behind us, inflation remains higher than we like, and it is hurting Australians. 

Our focus is on providing: 

1.  Targeted cost of living relief which does not add to inflation. 

1. Putting the budget on a more sustainable footing (which has seen us deliver the first budget surplus of $22 billion in 15 years) and; 

1.  Laying the foundations for our future prosperity by investing in skills, housing, manufacturing, and energy. 

Stage 3 Tax Cuts 

The Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 will deliver a tax cut to every taxpayer and bigger tax cuts to more Australians in a way that doesn’t add to inflation or burden the budget.

We have found a better way to deliver tax cuts in a way that’s better for the cost of living, better for returning bracket creep, better for women and the workforce, and better for the economy.

The legislation cuts two rates and lifts two thresholds and is the best way to provide more tax relief to more people and return bracket creep where it has the most impact.

The legislation ensures that from 1 July 2024:

• The 19 per cent tax rate reduces to 16 per cent (for incomes between $18,200 and $45,000)
• The 32.5 per cent tax rate reduces to 30 per cent (for incomes between $45,000 and the new $135,000 threshold)
• The threshold above which the 37 per cent tax rate applies increases from $120,000 to $135,000, and
• The threshold above which the 45 per cent tax rate applies increases from $180,000 to $190,000.

The legislation means all 13.6 million taxpayers will receive a tax cut – 2.9 million more than would have benefited from Scott Morrison’s plan from five years ago – and 11.5 million taxpayers (84 per cent of taxpayers) will receive a bigger tax cut.

It means that 5.8 million women (90 per cent of women taxpayers) will now receive a bigger tax cut. Nurses, teachers, and truckies are some of the most likely to benefit with more than 95 per cent of those taxpayers getting a bigger tax cut.

Strengthening Medicare

• Cheaper medicines – We reduced the maximum co-payment on prescriptions to $30, down from $42.50, resulting in a staggering $180 million in savings on 16 million prescriptions. At least 33, 643 people in Higgins will now enjoy a saving of $12.50 on medical scripts. 
• Individuals managing chronic conditions have seen a 50% reduction in the cost of many essential medicines, thanks to the introduction of 60-day dispensing. View my speech here. 
• Strengthening bulk billing: As part of our ongoing efforts to enhance healthcare accessibility, in August 2023 we invested $3.5 billion over 5 years to address the sharp decline in bulk billing. This measure aims to support 11.6 million eligible Australians, including children, pensioners, and other concession cardholders, ensuring that they can access a GP without incurring any out-of-pocket costs. 
• A new Medicare rebate for GP consultations of 60 minutes or longer, giving patients a rebate of $191.20 and doctors the time to provide better care for people with complex physical and mental conditions. 
• We invested in more bulk billing Urgent Care Clinics, taking the pressure off GPs and hospitals, providing care for illnesses and injuries that are urgent, but not life-threatening. These clinics are bulk billed, open early and late for walk-in appointments. To find your nearest clinic, visit this link.

Energy 

• Our Capacity Investment Scheme provides a national framework to help build a more reliable, affordable, and low-emissions energy system for Australia. 
• We are partnering with states and territories to deliver the Energy Price Relief Plan to address the immediate impact of price increases on Australian Households. We have provided targeted energy bill relief for households and small businesses, including electricity bill rebates of up to $500 to approximately five million low-income households.  
• Our $108 million cheaper energy package also includes solar panels for up to 5,000 Victorian apartments. 

• We are co-investing $100 million into community solar banks, providing cheaper electricity or more than 25,000 households.

Families

• Cheaper Childcare: We are proud to share that we have taken steps to make childcare more affordable for 1.2 million Australian households, including 4,400 families in Higgins. We are continuing to address the barriers that affect access to childcare. For more information, view the Productivity Commission’s draft report here. 
• The Government is increasing the base rate of income payments like JobSeeker Payment, Austudy and Youth Allowance payments for eligible people. This will support around 8,100 people in Higgins to benefit by $40 per fortnight.  
• Around 355 eligible single parents in Higgins received an increase in their Parenting Payment (Single), from $745.20 per fortnight up to $922.10 per fortnight. 
• Around 6500 households in Higgins benefited from the 15% increase in Commonwealth Rent Assistance rates, the largest increase in more than 30 years. 
• We delivered a historic expansion of paid parental leave, increasing to 26 weeks by July 2026, a change that’s good for families and good for the economy. We know support for families to balance care is critical to ensuring women’s long term economic equality. Please view my speech on paid parental leave here. 
• We have given older Australians the opportunity to work and earn more, increasing the amount pensioners can earn from $7,800 to $11,800 this year, without compromising their pensions. 
• We are providing up to 30,000 eligible families with no internet at home a free NBN service. To find out more about eligibility, please visit this link. 

Skills

• We are committed to removing cost barriers to skills training. Fee-Free TAFE will enable Australians to re-train and gain access to better paying jobs where demand is highest, which is critical to building Australia’s future workforce. 
• The National Skills Agreement is a 5-year-joint agreement to strengthen the VET sector, providing states and territories with access to additional Commonwealth funds of up to $3.7 billion over 5 years. 
• Our government has played a pivotal role in overseeing the creation of over 550,000 jobs in our economy, marking a record for a new government. This substantial job growth is a testament to our dedication to providing more opportunities for individuals across the nation. 
• Around 38,000 apprentices and trainees are now eligible for financial assistance. Beginning 1 January 2024, eligible apprentices and trainees may apply for loans, which provide cost of living assistance of up to $24, 492 interest-free over the course of their apprenticeship. Upon completion of their training, they will receive a 20% discount on their total loans.