The pandemic and recent conflict in Ukraine are pushing up the cost of living for Australians.
The Morrison Government is responding with new temporary, targeted and responsible measures as part of our plan for a stronger future.
Our practical measures include:
- Cutting fuel excise in half for the next six months – saving Australians 22 cents a litre every time they fill up their vehicle.
- A one-off $420 cost of living tax offset for more than 10 million low-and-middle income earners. Individuals receiving the low and middle income tax offset will now receive up to $1,500 and couples up to $3,000 from 1 July this year.
- A one-off $250 cost of living payment for more than 6 million Australians.
These measures come on top of the $40 billion in tax relief already provided by our Government since the start of the pandemic.
We’re also providing greater access to cheaper medicines for 2.4 million Australians with fewer scripts needed for free or further discounted medicines.
Our new cost of living measures in the recent Budget are responsible and targeted, delivering cheaper fuel and cheaper medicines and putting more money in the pockets of millions of Australians.
The Morrison Government believes in Australians keeping more of what they earn.
That’s why we’ve delivered permanent tax relief because lower taxes strengthen our economy and reward hard-working Australians.
In 2022-23, more than 12 million taxpayers will receive additional tax relief of up to $2,565 for individuals or $5,130 for couples.
This tax relief is part of a major reform to our tax system that will see around 95% of taxpayers face a marginal rate of no more than 30 cents in the dollar in 2024-25.
It means Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and tens of thousands of new jobs.
ACCESSIBLE, AFFORDABLE CHILD CARE
Under Labor, child care fees increased 53% over six years.
Since we came into office, there are 280,000 more children in childcare and support for families has reached record levels – $11 billion in 2022-23, up from $6.2 billion in 2013‑14.
This increased investment improves child care access and affordability for more than 1.3 million children and their families.
This helps families, particularly women who want to return to work or work more. Women’s workforce participation has reached a record high (62.4% in March 2022).
The child care system is targeted, with those who earn the least receiving the highest level of subsidy. Those who work, train or study the most get the most support.
Approximately 90% of families using approved child care are eligible for a Child Care Subsidy of between 50% and 85%.
We’re investing even more in affordable and accessible child care reforms to complement the Child Care Subsidy:
- We have increased the Subsidy by 30% for second and subsequent children in a family aged five or under in child care, up to a maximum rate of 95%.
- We have removed the annual Subsidy cap of $10,655 for families earning over $190,015 so that no family has an annual cap on their subsidies.
These changes mean 250,000 families across Australia will be on average $2,260 a year better off. Around 50% of eligible families will receive the maximum 95% subsidy for their second or third child in care.
It is estimated these changes will result in around 40,000 mums or dads being able to work an extra day per week.
Information about fees, vacancies, and quality ratings, and an easy to use fees estimator is available at: www.startingblocks.gov.au
AFFORDABLE, RELIABLE ELECTRICITY
During six years of Labor Government, power prices doubled.
We are now turning the corner on power prices.
Household electricity prices in the National Electricity Market have fallen by 8%, and for businesses by 10-12% over the past two financial years.
The ACCC says that electricity costs are now the lowest they have been in 8 years.
The Government is working to reduce power prices, by:
- Banning sneaky late penalty payments, saving residential customers up to $185 per year and small businesses up to $845 per year.
- Implementing the big stick legislation requiring big energy companies to put their customers first and pass on savings.
- Establishing a price safety net through the default market offer, which removes the ‘loyalty tax’ on those who don’t have time to shop around.
- Setting up a reference price to make it simpler and easier for consumers to understand and compare deals and offers from energy retailers.
The Morrison Government is working to deliver reliable, secure and affordable energy.
More Australians are now seeing their doctor without having to pay.
The GP bulk billing rate last year (12 months to June 2021) was 88.8%, up from 82.2% in 2012-13 (Labor’s last year in government).
More than 171.5 million free GP services were delivered in 2020-21 – 67.5 million more than in Labor’s last year.
Since we came into government, over 2,900 medicine listings worth $15 billion have been added to the Pharmaceutical Benefits Scheme.
In the 2022 Budget, we provided greater access to cheaper medicines for 2.4 million Australians with fewer scripts needed for free or further discounted medicines.
And to further reduce costs, a re-elected Morrison Government will also lower the PBS Medicines General Co-payment from 1 January 2023 by $10 per script.
This means the maximum price Australians will pay for PBS medicines drops from $42.50 down to $32.50 per script, a 24 per cent saving. Concession card holders pay only $6.80 per script.
This is the first time the PBS Medicine General Co-payment has been reduced by any Government and will benefit the more than 19 million Australians.
These help people suffering from cancer, heart disease, epilepsy, spinal muscular atrophy, multiple sclerosis, cystic fibrosis, severe asthma, severe osteoporosis and chronic migraines.
Some of these cost thousands of dollars, but are now available for $6.80 (concessional) or $42.50 (general patients) per script.
We have taken steps to make private health insurance simpler and more affordable. Reforms have resulted in the lowest premium changes in 20 years (2.7% in 2022).
BANNING EXCESS CREDIT CARD SURCHARGES
We’ve banned excessive credit card surcharges. This means businesses can now only surcharge what it actually costs them to process card payments.
HELPING FIRST HOME BUYERS
The Morrison Government is helping thousands more Australians achieve home ownership, and supporting thousands of jobs in the construction industry.
Since 2019, the Morrison Government has supported more than 300,000 Australians purchase their home.
This was supported by initiatives like HomeBuilder, the First Home Super Saver Scheme and the Home Guarantee Scheme.
In the 2022 Budget, the Morrison Government is more than doubling the Home Guarantee Scheme to 50,000 places.
We’ve also expanded voluntary contributions to save for a home deposit under the First Home Super Saver Scheme from $30,000 to $50,000.
This enables first home buyers to save more quickly and build a larger deposit, with concessional tax rates.
This year’s Budget also supports first home buyers through:
- Expanding the First Home Guarantee by providing 35,000 places each year, up from 10,000 per year – helping people build or buy a new home with a 5% deposit.
- Expanding the Family Home Guarantee with 5,000 places each year – helping single parents purchase a home with a 2% deposit.
- Establishing the Regional Home Guarantee with 10,000 places to support homebuyers in regional Australia.
Australians over 60 who want to downsize can now make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home.
This helps older Australians who want to downsize and helps to free up housing for those who are looking for a larger home for a family.
Information current as at May 2022