Energy rebate in federal budget

A $300 REBATE on energy bills and tax cuts are the centrepieces of the federal government’s 2024/2025 budget. The federal government handed down its budget on 14 May. The budget included a $300 energy rebate, which is set to take effect from 1 July. The rebate will be applied to power bills quarterly.

The budget also cemented the federal government’s changes to stage three tax cuts. Treasurer Jim Chalmers said “our new tax cuts for middle Australia are the biggest part of the cost of living relief in this budget.” “From 1 July, all 13.6 million taxpayers will get a tax cut. And for 84 per cent of taxpayers, and 90 per cent of women, a bigger tax cut than they would have under the previous government. This is about rewarding the hard work of our nurses and teachers, truckies and tradies – and the 2.9 million people earning $45,000 or less who would have received nothing. The average benefit is $1888 a year – that’s $36 a week.”

Chalmers also said the federal government would freeze the maximum cost of PBS prescriptions and spend $3.4 billion to add more medicines to the scheme. It has also capped indexation of student loans to the lowest of the consumer price index or the wage price index. $1.9 billion will be spent to increase the maximum rate of Commonwealth Rent Assistance by 10 per cent.

Dunkley MP Jodie Belyea said that the federal government “knows that people in Dunkley are doing it tough and this budget delivers additional help.” “We are backing more good jobs and fair wages in Dunkley by investing in the energy and skills for a future in Australia,” she said.

The budget did not contain any more money for the state government’s planned suburban rail loop. The federal government has committed $2.2 billion towards SRL East, which is projected to cost upwards of $30 billion. Victorian shadow transport infrastructure minister David Southwick said that the state government should put the rail loop on hold. “This is a project our state cannot afford. The Allan Labor government must pause SRL East and not enter any further contracts. The Liberals and Nationals reserve our right not to proceed any further with the SRL if elected to government in 2026,” he said.

First published in the Frankston Times – 21st May 2024