Major Changes to Take Effect Starting January 1 for Australians
New cost of living measures will provide financial relief for Australians beginning January 1, including changes to PBS co-payments and youth allowances
Australia, Cost of Living, Jim Chalmers, Youth Allowance, PBS, Inflation
Canberra: Starting January 1, a bunch of cost of living measures are rolling out to help Australians who are feeling the pinch. Treasurer Jim Chalmers is all about giving a little extra support to those struggling.
One big change is the freeze on Pharmaceutical Benefits Scheme (PBS) co-payments. This means the amount Australians pay for their medicines won’t go up with inflation. It’s expected to save nearly half a billion dollars over the next five years. Pretty significant, right?
Also, if you’re on Youth Allowance and have dependants, you’ll see a bump in your payments. Single recipients will get an extra $30.60, while partnered ones will see an increase of $24.30. Every bit helps!
And let’s not forget about aged care workers. They’re set to receive a whopping 50% increase in their wages, with another 50% coming in October 2025. That’s a big win for those in the sector.
Dr. Chalmers mentioned that the Albanese government is focused on providing “meaningful and responsible cost of living help.” He’s optimistic that many Australians will feel a bit more relief starting New Year’s Day.
He also pointed out that while inflation is easing and wages are rising, there are still folks doing it tough. The government’s priority is to keep helping those in need as we move into 2025.
There have been various measures already introduced to tackle the rising cost of living, like energy bill credits. However, some critics argue that these efforts are more about patching things up rather than preventing issues in the first place.
The Coalition has been vocal about their concerns, claiming the government is spending too much and actually contributing to inflation. The Reserve Bank has noted that while government spending is inflationary, it’s not the main cause.
Dr. Chalmers reassured everyone that the government is working to help people earn more and keep more of what they make. He highlighted that every taxpayer is getting a tax cut, medicines are becoming cheaper, and support for youth and carers is increasing.
He also warned that the biggest threat to household budgets in 2025 could be Peter Dutton, suggesting he might come after Medicare and wages, which could push electricity prices up.
With grocery prices hitting record highs and housing costs still climbing, the cost of living is definitely going to be on voters’ minds as they head to the polls next year. While Anthony Albanese hasn’t set a date for the federal election, it has to happen by May 16 at the latest.