Premier Financial Planning’s Federal Budget summary

Last night, the Federal Government handed down the budget for 2023-24. There were several winners in this year’s budget including but not limited to, economically disadvantaged women, small businesses and the aged care sector. The cost-of-living crisis was also addressed in this year’s budget. The government have put an emphasis on assisting Australian in any way they can.

Please note, these changes are proposals only and may or may not be made law.

Cost of living:

  • Energy bill relief: An electricity bill credit of up to $500 will be available in 2023/24 for:
    • Pensioners
    • Commonwealth Seniors Health Card holders and other concession card holders
    • Recipients of Carer Allowance and Family Tax Benefit A and B.
    • Veterans
    • Those eligible for existing State and Territory electricity concessions schemes.
  • Pharmaceutical Benefits Scheme (PBS) changes. Individuals will be allowed to buys twice as many common medicines for the price of one script under changes to the PBS from July 1 2023.
  • Bulk Billing incentives being tripled for the most common consultations. Eligible Australians include:
    • Children under the age of 16
    • Pensioners
    • Commonwealth concession cardholders

Social security:

  • Increase to working age payments. The fortnightly rate of Jobseeker and certain other benefits will increase by $1,040pa on 20 September 2023
  • Increasing Rent Assistance. The maximum rates of Rent Assistance will increase by 15% on 20 September 2023. This will provide recipients with up to $31 extra per fortnight.
  • Increase to Home Care packages. The government will increase the number of Home Care packages by 9,500 in 2023/24.

Personal taxation:

  • No changes to personal income tax.
  • Increase to the Medicare levy low-income thresholds. This means, low-income earners will be able to earn more income before being liable to pay the Medicare levy.

Aged care

  • Pay rise for Aged Care workers. The largest ever pay rise to Aged Care workers has been proposed in the 2023/24 Federal budget. The government are investing $11.3 billion to fund the pay rise. This equates to a 15% overall pay rise.

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