Everything You Need to Know About This Year’s Budget

today and lasting impact for tomorrow. Let's get into it.

Maybe you're wondering if rent relief is coming, or whether your energy bill is finally going to stop giving you anxiety, or maybe you just want someone to tell you what the heck is going on with tax cuts, housing, childcare, and in a way that actually doesn't make you completely glaze over. My friend. If that is you, you are in the right place. I'm Victoria Devine and this is a special bonus episode. I'm recording straight from my hotel

room in Canberra. I literally just got back from Parliament House, and I am breaking down the twenty twenty five federal budget in a way that is clear, practical, and hopefully in a way that you actually find interesting. Because while it might not be glamorous, the federal budget affects nearly every single part of your financial life, whether you're renting or trying to buy a home, or raising a family, or studying, or your simply just trying to keep up

with the rising cost of living. What was announced this week actually matters to you, my friend. It's not going to come as a surprise. I have done the reading. I've pulled out the headlines that actually affect your day to day, and I'm bringing you a little bit of a wrap that you can listen to, maybe while cleaning the house or walking the dog, or procrastinating something that you probably should be doing. This more important, So let's get into it, because I have made a lot of

notes and I have a lot to say. Let's start off on the right track, though, What the heck is the federal budget? Well, I'm glad you asked. It's basically the government's plan for how it wants to spend money and where that money is going to come from over the next financial year. It gives us a really clear look at what the current government's priorities are right, what they care about, and what they want to fund, and who they are planning on helping. The federal budget is just,

in my opinion, as political as it is economic. It outlines exactly what the current government wants to do, but it is not locked in. These announcements are proposals and promises. They are not guaranteed outcomes. Now, if the Labor government is not re elected in the upcoming election, the incoming government can actually choose to change, delay, or scrap any

of these measures. That means the hextet relief, energy build discounts, housing investments, and changes to childcare might actually not happen. A new government will bring its own budget priorities, which could look completely different. I'm going to talk about their budget counter at some point in the very near future. When I get my hands on it. The important thing to understand is what each party is actually offering before

we vote the budget. It gives us a really clear look at what Labour plans to do, but whether any of that actually happens is going to depend on who is in charge after the election happens. But here is what is really important for you to remember. A federal election is going to be called within the next six weeks, and my friend, that matters because everything in this budget is still just a proposal. None of it is guaranteed

unless it passes through parliament. If we get a change in government, there is every single chance under the sun that some of these promises will change, be delayed, or completely disappear altogether. And that is why now is the perfect time for you to finally start engaging with politics. I don't mean becoming an expert, you don't have to

do that. I mean knowing what each party stands for, how their politics are going to affect your life, and where they sit on issues that actually matter to you most. That is, my friend, financial empowerment. Your vote directly shapes the system that you are currently trying to succeed in. So, my friend, make it count. Let's start with the issue that is affecting nearly every single person that I know, and that is the cost of living. Inflation is currently

sitting at two point four percent. That's a big drop from the seven point eight percent peak in twenty twenty two, which honestly sounds promising. But let's be real, Prices are still going up. They're just going up a little bit more slowly. According to the ABS, households are still spending more than nine percent on essentials like rent and food and transport and health compared to last year. We I would say, are still in a squeeze when it comes

to tax cuts. From July twenty twenty six, the tax rate on income between eighteen thousand, two hundred dollars and forty five thousand dollars will drop down sixteen cents per dollar to fifteen cents. Then from July twenty twenty seven, it will drop a gain to fourteen cents. This means if you earn over forty five thousand dollars, you'll see a tax cut of around two hundred and sixty eight dollars in the twenty twenty six twenty twenty seven financial year.

It's not huge Let's be honest, but it is a small win for a lot of working Australians. In the budget there was energy bill relief information. From July. All households will receive two automatic seventy five dollars discounts on their electricity bills, one for each quarter. That's one hundred and fifty dollars in total. You don't need to apply, it's actually just going to appear as a credit for you.

Around one million small businesses are also going to benefit. But, and this is important, there is nothing in the budget that stops energy companies from raising their prices. So while the relief is absolutely helpful, it is still worth checking your plan and your provider and using a government comparison site to see if you can save even more. Let's talk about Medicare and medications. The government is putting an extra eight point five billion dollars into Medicare to increase

bog billing rates. Their goal is to make ninety percent of GP visits free by twenty thirty. They are also reducing the maximum cost of medications on the PBS from thirty one dollars and sixty cents down to twenty five dollars. This honestly, could make a very big difference and a very real difference for women who are managing chronic health conditions or families who need ongoing medication. Let's talk about hex and Help debt. A lot of you are here for this now. This got a lot of attention in

the media this week student debt. The government has promised to wipe twenty percent of all outstanding hex and Help debts from the first of July twenty twenty four. That sounds very sexy. Keep in mind that is only if they are re elected. If your debt is paid off before that day eight Unfortunately, you are not going to receive the discount. It only applies to what you still have owing on the first of July this year. The change is expected to remove around sixteen billion dollars in

student debt across the country. They are also changing how indexation on it works, so from now on it will actually be calculated based on whichever is lower inflation or wage growth, which should stop your HEX from growing faster than your salary. And I love to see it. This is new and something I didn't care so much about historically personally, that is childcare. This budget includes a major

investment in childcare. Families earning up to five hundred and thirty thousand dollars a year combined can access three days of subsidized care per week. This costs the government approximately fifteen point four billion dollars by mid twenty twenty five, and it's actually expected to rise to eighteen point four billion every single year from twenty twenty eight. For families who are already using childcare. This could actually lower out of pocket costs for parents who are returning to work,

especially women. This kind of support is going to make a huge difference. Let's go to a really quick break, because I am yapping and I want to pop an ad in here so that I can keep bringing you the content that you know and love. All right, welcome back, my loves. I hope this hasn't been too bland so far, but even if it has, I have very much been enjoying sharing this more than I care to admit. Housing and renting, let's talk about it now. This is huge

since the pandemic. House prices have risen by thirty eight point four percent, and rent you're not surprised here, is up thirty seven percent. If it feels harder than it ever has before to get ahead. That's because it is According to the Census, home ownership among Australians aged thirty to thirty four has dropped to fifty percent. In nineteen seventy one, it was sixty four percent. This budget includes an extra one billion dollars to housing, bringing the government's

total commitment to thirty three billion dollars. Their target is to build one point two million new homes by twenty thirty. To speed things up, they are also funding modular and prefabricated homes that can be built up to fifty percent faster than traditional construction. Now, my first home buyers, the Help to Buy scheme is going to be getting an eight hundred million dollar boost and it will be open

to even more people. I can do a podcast on this, but it's essentially a shared equity model where the government buys a portion of your home with you, so you don't need as large as a deposit or a mortgage. And I have a lot of things to say about that. Eligibility includes individuals earning up to one hundred thousand dollars a year and couples or single parents earning up to one hundred and sixty thousand dollars. Property price caps are

going to vary state by state. In New South Wales, for example, homes up to one point three million dollars are going to be eligible in the cities and up to eight hundred thousand dollars in regional areas. The government is also investing seventy point nine million dollars to support First Nation's home ownership, and they are introducing a two year ban on foreign investors buying existing properties. The ATO will receive funding to enforce this, and I think both

of those things are fantastic. Let's talk about renters. Renters were not forgotten, but there is still so much work to be done. The government announced a framework called a Better Deal for Renters, which aims to reduce unfair evictions and rent hikes. They don't have direct control over rental laws, but they'll be using National Cabinet to ensure stronger protections. There have also been increases to Commonwealth rent assists, though

housing advocates have been pushing for more direct support. Fair Let's talk about crisis housing and homelessness. The budget has included two point five million dollars for emergency accommodation for women and children escaping domestic violence. Personally, I don't think that's enough, but that's a conversation for another day. There's another six point five million dollars that will fund research and policy advice to improve housing security for people at

risk of homelessness as well. So I guess what are you thinking? What is the big takeaway here? Those are just the highlights. I would say this budget is trying to ease pressure in a few key areas, so housing, childcare, student debt, energy, and health care. There was so much more in the budget than what I have recapped, but I have just pulled out what headlines I think are really appropriate for you to understand if you're consuming Shee's on the Money content, So if that's for you, I

would recommend going and checking out the Daily Os. They do a much more in depth analysis of the budget on every single facet, whereas I have really deep dove I suppose is the word into really understanding the financial side of things. What I want you to remember here is most of this is still proposal. Nothing is locked in. With an election coming very soon, this is actually time

for you to start paying attention. Your money is directly shaped by the decisions that our government shapes whether you like it or not. This means that being informed. It's

not powerful, it's essential. And my friend, I'm going to be here, I'll be right here breaking it down as we get closer to the election, because I think it is so flipping important that you understand this and somebody who just explains it without bias or narrative, like I am, actually not during any of this process going to be sharing with you who I vote for or what my opinions are on voting, because my job in this space, or what I think my job in this space is,

is to give you every single tool and resource to make a decision that is in line with your values, not mine. So I'm going to continue to bring this information to you because honestly, I am such a politics nerd and I would love that privilege. So play along. We'll see if we can get some fun faces on the podcast for you. And that's a wrap, my friends. I hope you have a brilliant Saturday.