Media Release by The Hon Jenny Macklin MP

Helping Australians with their everyday expenses

Joint Media Release with:

  • Wayne Swan MP, Treasurer

Millions of hard working Australians will start receiving more money in their pay packets, with new tax cuts starting tomorrow.

The tax cuts will be worth at least $300 for most people earning under $80,000, including tripling the taxfree threshold from $6,000 to $18,200 – the largest increase in the history of the tax-free threshold. This major reform will reward hard work and put more money in the pockets of millions of Australian workers, particular part-time workers such as working mums.

We know that many Australians are feeling the pinch. That’s why the Gillard Government is providing assistance to millions of Australians to help them make ends meet.

Since May we have provided about 6.5 million payments worth more than $1.3 billion to families, pensioners, veterans, students and jobseekers to help with the modest price impacts of the carbon price.

Already more than 1.6 million families have received household assistance payments worth up to $110 for each child and families receiving Family Tax Benefit Part B also got an additional payment of up to $69.

In total low and middle income families have shared in about $325 million in household assistance payments.

These payments are on top of the Schoolkids Bonus payment of $409 for each child in primary school and $818 for each child in high school paid to 1.3 million families this month.

We’ve also provided household assistance payments to more than 3.2 million age pensioners, about 280,000 self-funded retirees, 315,000 students, about 620,000 jobseekers and more than 310,000 members of the veteran and defence community since May.

Pensioners across Australia have shared in $707 million in household assistance. We’ve made sure that every pensioner is at least 100 per cent covered for any budget impacts of the carbon price.

In fact 93 per cent of pensioner households will be at least 20 per cent better off. And maximum rate pensioners – about 2.1 million pensioners – will be better off by $134 (singles) and $201 (couples) on average, a buffer of more than 65 per cent.

Extra ongoing assistance will become a regular part of government payments from next year.

We’re also helping low-income households through our $29.9 million Home Energy Saver Scheme, which will provide practical help on how people can become more energy efficient and better manage their energy bills.

To help low-income households make the switch to more energy efficient household appliances and home products, like heating and cooling systems, we are providing $5 million for an additional 10,000 no interest loans, and $20.7 million for subsidies to reduce the cost of these appliances, under the No Interest Loans Scheme.

People from low-income households who miss out on the full benefit of tax cuts and increases to government payments delivered through the Household Assistance Package, including some self-funded retirees, may also apply for the Low Income Supplement worth $300 from tomorrow.

And extra support worth $140 per year will be available for Australians relying on certain essential medical equipment at home, or needing extra heating or cooling for medical reasons, to help them cover any extra home energy costs.

We want to make sure that people with the least room to move in their budgets get all the help they need. That’s why we’re delivering generous household assistance payments giving many people on low incomes more money than their expected carbon price impacts.

The Household Assistance Package is part of the Australian Government’s plan for a Clean Energy Future and will benefit those who need it the most.

To find out more, go to: australia.gov.au/householdassistance or call 132 468.

SUMMARY OF HOUSEHOLD ASSISTANCE PAYMENTS

FAMILIES

More than 1.6 million families have received a lump sum payment in their bank accounts.

Families on Family Tax Benefit Part A received up to $110 per child.

Families on Family Tax Benefit Part B received up to $69.

Families will start receiving a boost to their regular payments from July 2013.

PENSIONERS

About 3.2 million pensioners have received a lump sum payment in their bank account.

Recipients of the Age Pension, Disability Support Pension and Carer Payment received $250 for singles and $380 for couples combined.

Pensioners will receive a permanent boost to their regular payments from March 2013.

SELF-FUNDED RETIREES

More than 280,000 self-funded retirees who hold a Commonwealth Seniors Health Card have received a lump sum payment along with their quarterly Seniors Supplement.

Eligible self-funded retirees have received $250 for singles and $380 for couples combined.

Eligible self-funded retirees will receive a boost to their regular quarterly Seniors Supplement from June 2013.

VETERANS AND DEFENCE COMMUNITY

More than 200,000 service pensioners, DVA age pensioners and war widow/ers over age pension age have received a lump sum payment in their bank account.

They have received a payment of $250 for singles and $380 for couples combined.

They will receive a boost to their regular payments from March 2013.

Another 112,000 members of the veteran and defence community (such as DVA Disability pensioners and Seniors Supplement recipients) have also received a lump sum payment ranging from $140 to $380.)

STUDENTS AND YOUNG PEOPLE IN TRAINING

More than 315,000 students and young people in training have received a lump sum payment in their bank account.

People on Youth Allowance, Austudy or ABSTUDY have received a payment of up to $190.

They will receive another lump sum payment in July 2013, and will begin receiving a boost to their regular payments from January 2014.

JOBSEEKERS

About 620,000 jobseekers have received a lump sum payment in their bank account.

Newstart recipients have received up to $180 for singles and $300 for couples combined.

Other income support recipients (such as Parenting Payment Partnered and Widow Allowees) have received a lump sum payment ranging from $150 to $210. Parenting Payment Single recipients will receive $210

They will receive a boost to their regular payments from March 2013.