In a welcome relief for millions of Australians grappling with rising living costs, the government is set to roll out a series of cost-of-living measures this month. These measures, aimed at easing the financial burden faced by many, come at a time when inflation, though moderating, remains a concern for households across the nation. Treasurer Jim Chalmers recently remarked that Australians are “under the pump,” highlighting the pressing need for support.
The latest data from the Australian Bureau of Statistics indicates a moderation in inflation, standing at 4.9 percent in the year to July, down from 5.4 percent the previous month. While this may suggest a slight improvement, it is still well above the Reserve Bank of Australia’s target range of 2-3 percent.
This persistent high inflation has put immense pressure on the budgets of ordinary Australians, making it increasingly difficult to make ends meet.
Starting from September 20, more than a million Australians on income support will experience a significant relief, marking the largest set of permanent increases in 14 years. These increases, which have been introduced outside the context of the Covid-19 pandemic, are expected to alleviate the financial stress experienced by many households.
One of the key beneficiaries of these measures will be approximately 782,000 individuals on JobSeeker, who will see their payments rise by $40 per fortnight. This increase, though seemingly modest, can make a substantial difference for those living on the brink of financial instability.
Additionally, around 222,000 Australians on Youth Allowance and 64,000 families receiving the partnered parenting payment will also benefit from these much-needed boosts to their financial support.
Single parents will no longer face the termination of government assistance when their youngest child reaches the age of eight. Instead, the sole parenting payment will now extend until the child reaches 14 years of age, offering a welcome financial boost to approximately 57,000 families, equating to an additional £98.75 per fortnight.
Furthermore, the 1.1 million Australian households receiving Commonwealth rent assistance will benefit from a substantial 15 percent boost to the maximum rate, the most significant increase in over three decades. This increase, coupled with the CPI adjustment on September 20, will provide much-needed financial relief for these households.
