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Cost Of Living Will Decrease After Australia’s Federal Budget

Cost Of Living Will Decrease After Last Week’s Budget But Not For Everyone

The highlight of Australia’s federal budget which was released the previous week was that it would tackle the issue of high costs of living. However, there is a certain chunk of the population, including the unemployed, who will miss out on the chance to benefit from it.

The Australian government rolled out its highly advertised federal budget for the year in the last week of March. The federal budget, although containing lots of other details, was picked up by everyone (mainly due to how the government talked about it) for reducing the cost of living. First time home buyers as well as current home owners will benefit from the new budget.

The federal budget also slashed the excise duty on fuel prices as well as plans to give away a one-time cash handout to pensioners. Also, there are more plans to roll out tax relief programs. However, a third of the Australian population who live in rented spaces may not receive any benefits. The cost of living will remain the same, if not increase, for more than 2.6million Australians households.

Rental stress is quite a real thing here in Australia with more than 14% renters reported to suffer from it. A whopping 30% of their income goes towards rent. Expert economics from various places suggested that renters should have been included in the federal budget.

It is true that the renters have been ‘ignored’ by the budget but they may fall under other benefits that the budget will allow for them. Tax relief programs may just be one of them.

The Prime Minister made an insightful point on the situation though. Mr. Morrison commented that the target of the budget was to help renters be able to buy their own place. This makes more sense if we take the average income of the renting population into consideration. How ‘close’ a renter is to buying a new house is what will decide how effective the budget is.

Places such as Melbourne have a high rate of rental stress, where areas such as Chisholm report a 1 out of 5 household under rental stress.

This is only one side of the coin though – the government has put aside $5billion for people renting a house. This is, however, for people who fall under other programs (not because they are renters). This includes pensioners, the unemployed, and people receiving youth allowance.