Prime Minister Anthony Albanese has announced that new cost of living measures will be introduced in this year’s budget to provide relief for struggling Australian families. With a focus on alleviating inflationary pressures, the government aims to address longer-term issues such as labor market shortages and supply chain limitations. The proposed measures include expanding fee-free TAFE, offering more places to support skills development and employment opportunities. Additionally, households will continue to receive assistance through existing initiatives like energy bill relief and boosted Commonwealth rent assistance.
Speaking at a press conference in Sydney, Prime Minister Albanese expressed his optimism for the year ahead, stating, I remain very positive as we enter 2024. Our priority will be to provide cost of living relief while taking pressure off inflation. He also revealed that further propositions from Treasury and Finance would be considered in the lead-up to the May budget.
The government’s commitment to supporting Australians also extends to helping more individuals and families achieve homeownership. Albanese highlighted the success of the expanded home guarantee scheme, which has already aided 26,000 people in the first six months of its implementation.
Despite concerns surrounding interest rate rises and living costs, Reserve Bank of Australia (RBA) governor Michele Bullock believes that households are in a relatively strong position. Speaking at a conference in Hong Kong, Bullock stated, Overall, households are in a pretty good position. Their balance sheets are pretty good. These remarks echo the sentiment that despite external uncertainties, Australian households have been diligently saving, leading to a record high in household deposits.
Sally Tindall, the research director at RateCity, supported this observation, emphasizing the importance of building healthy financial buffers. Tindall highlighted the monthly increase in household deposits, with Australians saving over $10 billion extra in November alone. While the RBA looks for signs of people utilizing their savings, this trend indicates a positive mindset among Australians who prioritize financial security.
The government’s cost of living relief measures come as a welcome initiative for struggling families. By addressing key economic challenges and implementing measures that support skills development, employment, and housing, the government aims to provide much-needed support to Australians experiencing financial difficulties. As the budget approaches in May, the Treasury and Finance departments will continue to collaborate on further propositions to ensure the successful implementation of these measures.
Overall, these cost of living relief efforts demonstrate the government’s commitment to its citizens, recognizing the challenges they face and taking steps to alleviate the pressures of inflation and affordability. With a focus on promoting financial well-being, the government aims to create a more stable and prosperous future for struggling Australians across the country.
