{"id":3880,"date":"2024-05-16T14:49:20","date_gmt":"2024-05-16T14:49:20","guid":{"rendered":"https:\/\/www.bestpropertyagent.com.au\/?p=3880"},"modified":"2024-05-17T07:15:06","modified_gmt":"2024-05-17T07:15:06","slug":"federal-budget-analysis-2024-winners-and-losers","status":"publish","type":"post","link":"https:\/\/www.bestpropertyagent.com.au\/blog\/federal-budget-analysis-2024-winners-and-losers\/","title":{"rendered":"Federal Budget Analysis 2024: Winners And Losers"},"content":{"rendered":"\n

Treasurer Jim Chalmers recently presented the second full-year Budget<\/a> for the Albanese Government, focusing on alleviating inflationary pressures. As per the report by Forbes.com on Winners And Losers, the Budget aims to address the rising cost of living through various measures, including tax cuts, energy rebates extension, and rent assistance.<\/p>\n\n\n\n

Chalmers emphasized the importance of easing the financial burden on Australians while ensuring responsible fiscal management. Notably, the Budget forecasts a surplus of $9.3 billion, marking a positive turn since the last surplus in 2007\/2008.<\/p>\n\n\n\n

Shadow treasurer Angus Taylor raised concerns about the government’s spending trajectory, attributing the surplus to favorable economic conditions rather than prudent financial management.<\/p>\n\n\n\n

Let’s delve into the winners and losers of the 2024 Federal Budget:<\/a><\/p>\n\n\n\n

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2024 Budget Winners<\/strong><\/h2>\n\n\n\n
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Australian Taxpayers<\/strong><\/h3>\n\n\n\n

Australian taxpayers received a significant boost during the Budget night on May 14, mainly through the implementation of stage three tax cuts. These cuts, initially proposed by the former Morrison government and later supported by Labor, have been adjusted to benefit lower and middle-income earners more. However, this adjustment has stirred controversy, with the Liberal Party accusing the government of deviating from its election promise.<\/p>\n\n\n\n

Under these new tax cuts, which were reluctantly approved by the Opposition earlier this year, Australian workers will see a reduction in their income tax starting from July 1. It is anticipated that these cuts will amount to $324 billion over the next decade. For instance, a worker earning $90,000 annually can expect a tax cut of around $1929. This reduction in taxes is expected to contribute to an average disposable income growth of 3.5% this year, benefiting approximately 14 million taxpayers.<\/p>\n\n\n\n

For more information on how these tax cuts may affect you personally, refer to our Guide to Stage Three Tax Cuts.<\/a><\/p>\n\n\n\n

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University Students<\/strong><\/h3>\n\n\n\n

The government has announced plans to reduce student<\/a> debts by $3 billion, effective from June last year. This reduction will be achieved by indexing HECS and HELP debts to either the consumer price index or the wage price index, whichever is lower.<\/p>\n\n\n\n

Previously, all payments were indexed solely to inflation. With the new rules, students with an average HECS debt of approximately $26,000 can expect a reduction of about $1200 in their debt, according to government estimates. This change is expected to benefit around three million students<\/a>.<\/p>\n\n\n\n

Additionally, starting from July 2025, approximately 70,000 student nurses, midwives, teachers, and social workers will receive nearly $320 per week during their mandatory work placements<\/p>\n\n\n\n

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Tafes and Schools<\/strong><\/h3>\n\n\n\n

The government is taking steps to enhance vocational education and schooling opportunities. They plan to introduce 15,000 fee-free Tafe positions and approximately 5,000 pre-apprenticeships to encourage more individuals to pursue careers in the construction and housing sectors.<\/p>\n\n\n\n

Furthermore, the federal government aims to address funding gaps in schools by negotiating with states to cover a portion of a 5% shortfall. Additionally, they intend to increase federal funding for state schools from 20% to 22.5%, as part of a $60 billion package spanning four years. During the Budget speech, Chalmers highlighted a $350 million investment in fee-free courses designed to prepare individuals for university, particularly benefiting those who may have missed out on a university placement.<\/p>\n\n\n\n

Chalmers emphasized the government’s commitment to raising the national tertiary qualification attainment rate to eight out of 10 workers by 2050, with new funding reforms to support this objective.<\/p>\n\n\n\n

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Hospitals<\/strong><\/h3>\n\n\n\n

Public hospitals are set to receive increased funding, as the government finalizes a new five-year funding deal with states and territories starting next year. In the Budget, the Commonwealth has allocated an additional $4 billion in funding for the 2025-26 agreement, along with a further boost of $13 billion<\/a> over the subsequent five years.<\/p>\n\n\n\n

Moreover, the Medical Research Future Fund will see a significant injection of funds. Over $1.1 billion has been allocated for ongoing research, $500 million for new research projects, and $300 million specifically designated to investigate cancers with high fatality rates and healthcare system inequalities.<\/p>\n\n\n\n

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Bill-Paying Households<\/strong><\/h3>\n\n\n\n

Last year, rebates of up to $500 per household were targeted at the most vulnerable, providing crucial relief. This year, as part of a $3.5 billion package, every Australian will receive $300 to alleviate bill burdens, with an additional $20 for one million small businesses.<\/p>\n\n\n\n

During his speech, Chalmers highlighted the correlation between reducing energy bills and curbing inflation. He pointed out that while electricity bills increased by 2% last year, the rise would have been more substantial without government relief measures.<\/p>\n\n\n\n

Unfortunately, electricity prices are expected to rise again this year, following the Australian Energy Regulator’s approval of price hikes by electricity distributors over the next five years. These distributors, covering regions in The Northern Territory, New South Wales, and Tasmania, cite inflationary pressures as justification. Notably, small businesses in the NT could face the steepest increases, with electricity costs projected to rise by $332 annually.<\/p>\n\n\n\n

Also read : Unlocking Financial Freedom: Budget 2024 Delivers Energy Relief and Rent Assistance Surge<\/a><\/p>\n\n\n\n

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Childcare Workers<\/strong><\/h3>\n\n\n\n

The Budget’s provision of incentives for childcare workers came as no surprise, considering the sector’s challenges with understaffing and low morale. Many childcare workers have left the industry, with some transitioning to the aged-care sector following the government’s wage improvements in the previous Budget.<\/p>\n\n\n\n

To address this exodus, Chalmers announced an increase in childcare wages, although the specific amount remains undecided. Details regarding the wage rise are expected to be finalized after the Fair Work Commission processes.<\/p>\n\n\n\n

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Those Who Rely on Medications<\/strong><\/h3>\n\n\n\n

Chalmers estimated that six out of 10 PBS scripts are prescribed to pensioners and concession card holders. To alleviate the burden of prescription costs, the Budget allocates $3 billion to freeze the maximum amount these vulnerable groups will pay for their prescriptions for five years.<\/p>\n\n\n\n

This means that no pensioner or concession cardholder will pay more than $7.70 for the medicine they require, ensuring affordable access to essential medications.<\/p>\n\n\n\n

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Working Parents<\/strong><\/h3>\n\n\n\n

While Treasurer Chalmers isn’t reviving the ‘Baby Bonus’ policy from 2002, aimed at incentivizing childbirth, he aims to support families, particularly working parents.<\/p>\n\n\n\n

Acknowledging that individuals should have the freedom to make their own family decisions, Chalmers emphasizes the government’s role in facilitating larger families if desired. He stated, “I know that people will make their own choices… but we want to make it easier for people to have bigger families if they want to.”<\/p>\n\n\n\n

In line with this, the government has allocated $1.1 billion for superannuation on government-funded Parental Leave. Chalmers emphasizes the importance of being present during the first months of a child’s life, stating, “When it comes to those first months of your child’s life, you can’t put a price on being there. And you shouldn’t pay a price for being there.”<\/p>\n\n\n\n

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Low-Income Renters<\/strong><\/h3>\n\n\n\n

Renters have faced challenging times in recent years, with landlords increasing rents by 11.5% over the past year alone, as reported by PropTrack\u2019s Rental Report.<\/p>\n\n\n\n

In an effort to address this issue and stimulate housing supply, the government has unveiled a $12.3 billion housing package, building upon last year’s $10 billion Housing Australia Future Fund initiative aimed at constructing 30,000 social and affordable rentals.<\/p>\n\n\n\n

The new package encompasses various initiatives, including a $9.3 billion five-year agreement with states on social housing and homelessness, $1 billion allocated for states and territories to expedite infrastructure development for housing projects, and an additional $1 billion for crisis accommodation, particularly for women and children fleeing domestic violence. Notably, the Leaving Violence Program, providing support to women leaving abusive relationships, will become a permanent fixture.<\/p>\n\n\n\n

Despite these efforts, Stephen Glackin, a senior researcher at Swinburne University of Technology, remains skeptical about the package’s impact on the housing crisis. He notes the economic inelasticity of housing, suggesting that increased supply may not necessarily lead to reduced prices unless the number of available houses is significantly increased.<\/p>\n\n\n\n

While Glackin appreciates the focus on social housing, he highlights the complexities involved in its implementation, suggesting that it may take years to yield tangible results.<\/p>\n\n\n\n

Additionally, Commonwealth rent assistance received a 15% increase in last year’s Budget, with Treasurer Chalmers committing to a further 10% rise this year, amounting to a $1.9 billion package. This assistance aims to support eligible pensioners and Centrelink recipients in meeting their tenancy costs.<\/p>\n\n\n\n

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East Coast State Roads<\/strong><\/h3>\n\n\n\n

The government has allocated significant funding to upgrade infrastructure along the east coast of Australia. This includes:<\/p>\n\n\n\n