The Federal Government has handed down its 2024 Budget, containing some measures targeting young people and their growing expenses.
Here’s what is in the budget for young people.
What did young people want from the Budget?
Polling by TDA showed more than 70% of young people wanted cost of living relief in the Federal Budget.
This is because inflation (rising prices) has been consistently high over the past few years, meaning groceries, energy, and rents have become increasingly expensive.
Energy bills
Every Australian household will receive $300 off their energy bills. This won’t be based on a household’s income.
Meanwhile, eligible small businesses will receive a $325 discount on their power bills. This will impact about one million small businesses.
The relief package will be worth $3.5 billion.
Rent
The Budget includes an extra $1.9 billion to fund rent subsidies for welfare recipients over the next five years.
From September, Australians who receive government assistance to pay their rent (e.g. Centrelink recipients) will receive an additional 10% in rent assistance.
Last year, the Government boosted the rent assistance payment by 15%.
Median rentals in Australia cost $627, according to the data analyst group CoreLogic. This represents an 8.5% jump compared to last year.
Jobseeker
Anyone on income support payments who can work up to 14 hours a week will be eligible for a higher JobSeeker payment compared to their current eligible rate.
The budget forecasts unemployment will increase to 4.5% in the next two years. The unemployment rate measures the percentage of people who were looking for work but could not find any.
Current unemployment is at 3.8%.
HECs
The Government will wipe $3 billion in HECS debts, as part of its overhaul of the student debt repayment system. This was confirmed in a pre-budget announcement last week.
HECS debts increase annually to reflect inflation. This is called ‘indexation’.
Under the new system, the rate of indexation will be determined by whichever is lower between the Consumer Price Index (inflation) or the Wage Price Index (the figure measuring rising wages).
Currently, the lower rate of these is inflation (3.6%).
The scheme will be backdated to last year, when student debts increased by 7.1%. The measure will need to pass Parliament before coming into effect.
