She's On The Money - Everything You Need to Know About This Year’s Budget

Starting point is 00:00:00 Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

Starting point is 00:00:36 hello and welcome to she's on the money the podcast for people who want to understand what the federal budget actually means without having to read 300 pages of economic jargon because you know your finance bestie VD is just going to do it for you. Maybe you want to know if your hex debt is going to shrink. 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

Starting point is 00:01:44 room in Canberra. I literally just got back from Parliament House, and I am breaking down the 2025 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 you're 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 rap that you can listen to maybe while cleaning

Starting point is 00:02:29 the house or walking the dog or procrastinating something that you probably should be doing that's 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

Starting point is 00:03:10 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 HECS debt relief, energy bill 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 gives us a really clear look at what Labor

Starting point is 00:04:02 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

Starting point is 00:04:51 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 2.4%. That's a big drop from the 7.8% peak in 2022, 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 9% on essentials like rent and food and transport and health compared to last year. We, I would say, are still in a squeeze.

Starting point is 00:05:41 When it comes to tax cuts, from July 2026, the tax rate on income between $18,200 and $45,000 will drop down 16 cents per dollar to 15 cents. Then from July 2027, it will drop again to 14 cents. This means if you earn over $45,000, you'll see a tax cut of around $268 in the 2026-2027 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 $75 discounts on their electricity bills, one for each quarter. That's $150 in total. You don't need to apply. It's actually just going to appear as a credit for you. around 1 million small businesses are also going to benefit but and this is important there is

Starting point is 00:06:43 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 8.5 billion dollars into medicare to increase bulk billing rates their goal is to make 90 percent of gp visits free by 2030 they are also reducing the maximum cost of medications on the pbs from 31 and 60 cents down to 25 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 HECS and help debt. A lot of you

Starting point is 00:07:35 are here for this. Now, this got a lot of attention in the media this week, student debt. The government has promised to wipe 20% of all outstanding HECS and help debts from the 1st of July 2024. That sounds very sexy. Keep in mind, that is only if they are re-elected. If your debt is paid off before that date, unfortunately, you are not going to receive the discount. It only applies to what you still have owing on the 1st of July this year. The change is expected to remove around $16 billion 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 HECS from growing faster than your salary, and I love to see it.

Starting point is 00:08:33 This is new and something I didn't care so much about historically, personally, and that is childcare. This budget includes a major investment in childcare. Families earning up to $530,000 a year combined can access three days of subsidized care per week. This costs the government approximately $15.4 billion by mid-2025, and it's actually expected to rise to $18.4 billion every single year from 2028. For families who are already using child care, 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

Starting point is 00:09:26 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 38.4% and rent, you're not surprised here, is up 37%. 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 30 to 34 has dropped to 50%. In 1971, it was 64%. This budget includes an extra $1 billion for housing, bringing the government's total commitment to $33 billion. Their target is to build 1.2 million new homes by 2030. To speed things up, they are also funding

Starting point is 00:10:31 modular and prefabricated homes that can be built up to 50% faster than traditional construction. Now, my first home buyers, the help to buy scheme is going to be getting an $800 million 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 of a deposit or a mortgage, and I have a lot of things to say about that. Eligibility includes individuals earning up to $100,000 a year and couples or single parents earning up to $160,000. Property price caps are going to vary state by state. In New South Wales,

Starting point is 00:11:18 for example, homes up to $1.3 million are going to be eligible in the cities and up to $800,000 in regional areas. The government is also investing $70.9 million to support First Nations 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

Starting point is 00:12:09 increases to commonwealth rent assists though housing advocates have been pushing for more direct support fare. Let's talk about crisis housing and homelessness. The budget has included $2.5 million 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 $6.5 million 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, V? 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 healthcare.

Starting point is 00:12:56 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 are consuming sheets on the money content. So if that's for you, I would recommend going and checking out the Daily Oz. 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.

Starting point is 00:13:43 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 have somebody who just explains it without bias or narrative. Like I'm 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

Starting point is 00:14:31 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 the advice shared on she's on the money is general in nature and does not consider your individual circumstances she's on the money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN 321 649 27708 AFSL 451 289.

Starting point is 00:15:26 Thanks for watching!

She's On The Money - Everything You Need to Know About This Year’s Budget

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