You’re not alone if you’ve been feeling the pinch at the checkout, the petrol pump, or even the doctor’s surgery. The cost-of-living crisis has been front and centre for millions of Australians, especially those who often juggle fixed incomes, family support, and rising bills.
But there’s some good news on the horizon: the federal government has announced a sweeping package of cost-of-living relief measures that could put more money back in your pocket and ease some of the financial pressure.
Let’s examine what’s coming, who will benefit, and how these changes could impact your everyday life.
Tax deduction
The lowest tax rate bracket will drop from 16 per cent to 15 per cent on 1 July 2026 and then to 14 per cent on 1 July 2027. While that might sound like a small change, it adds up over time.
For the average taxpayer, this means an extra $5 a week from 2026, and $10 a week from 2027—money that could go towards groceries, bills, or a little treat for yourself.
Also on the cards is a $1,000 instant tax deduction from July 2026. Instead of keeping track of every little work-related expense, you can claim this deduction instantly, simplifying your tax return and potentially boosting your refund.
HECS/HELP debt relief
If you, your children, or even your grandchildren are still paying off a HECS (Higher Education Contribution Scheme) or HELP (Higher Education Loan Program) debt, there’s a major shake-up coming.
From 1 June 2025, student loans will be slashed by 20 per cent before indexation is applied.
That’s expected to wipe a staggering $16 billion in student debt for around three million Australians, with the average person seeing $5,520 disappear from their balance.
Repayment thresholds rising
The minimum income threshold for repayments will also jump from $54,000 to $67,000, meaning those earning under $67,000 won’t have to make repayments. For someone earning $70,000, that’s about $1,300 less per year in repayments.
Fee-free TAFE
Looking to upskill or retrain? From 2027, the government will fund 100,000 fee-free TAFE (Technical and Further Education) places each year, making it easier for Australians of all ages to access new career opportunities without the burden of extra debt.
Energy rebates
From July 2025, every household and around one million small businesses will receive another $150 energy bill rebate, extending the current support until the end of 2025.
With high energy prices, this is a welcome boost for anyone struggling to keep the lights on and the heater running.
Are you thinking about going green? The $2.3 billion Cheaper Home Batteries Program will roll out in July 2025, reducing the cost of a typical installed battery by 30 per cent—a savings of around $4,000.
This could make solar and battery systems more accessible, helping you save on bills in the long run.
Bulk-billing boost
Medicare will receive an $8.5 billion injection over four years, aiming to deliver an extra 18 million bulk-billed GP (general practitioner) visits annually.
The goal? To make 9 out of 10 GP visits bulk-billed by 2030. From November this year, the bulk billing incentive will be tripled, making it more attractive for GPs to bulk-bill all Australians.
The government is also investing in training 2,000 new GPs annually by 2028 and building 50 new urgent care clinics nationwide. This should mean shorter wait times and better access to care, especially in regional and outer suburban areas.
The price of PBS (Pharmaceutical Benefits Scheme)-listed medicines will be capped at $25 per script, making it easier to manage the cost of ongoing prescriptions.
Easier path to home ownership
First-home buyers can access 5 per cent deposits without paying lenders’ mortgage insurance, making it easier to get on the property ladder.
The government is also investing $10 billion to build up to 100,000 homes reserved for first-home buyers.
Income and property price caps for the Help to Buy shared equity scheme will rise, allowing more buyers to ‘co-buy’ their home with the government. This could help up to 40,000 Australians into home ownership.
Guaranteed subsidised childcare
Parents will now be guaranteed at least three days of subsidised childcare, with the old ‘activity test’ scrapped. This means more families can access affordable childcare regardless of their work situation.
A $1 billion fund will build and expand around 160 childcare centres over four years, improving access and reducing waitlists.
Cracking down on supermarket prices
The government has promised to ban supermarket price gouging, implementing recommendations from the Australian Competition and Consumer Commission’s supermarket inquiry.
This includes more transparency around prices, promotions, loyalty programs and a new task force to advise on excessive pricing.
Other notable measures
- Alcohol excise on draught beer frozen for two years from August 2025, saving you a few cents on your next pint at the pub.
- $10,000 cash boost for construction apprentices to encourage more tradies into the workforce.
- Electric and hydrogen vehicles will continue to be exempt from fringe benefits tax if bought through salary packaging and under the luxury car tax threshold.
What do you think of these new cost-of-living relief measures? Will they make a difference to your household budget? Are there other areas where you’d like to see more support? Share your thoughts and experiences in the comments below—your voice matters!
Also read: ATO warns against viral myth about ‘voluntary’ tax loophole
Why wait so long for these miserable cost of living help why not put in place immediately.
Hey, it’s not so much the draught beer, it’s the cost on a slab of beer which happens twice a year that puts this near a luxury item. It’s also bottles of spirits like Bundaberg Rum which some are saying the Government is currently charging 63% on a litre bottle of Rum. It’s also becoming a luxury item. And it affects a lot of pensioners who enjoy these items, but is becoming prohibitive. .
There is only a small benefit for pensioners in any of that.
They overlooked the big items of the massive tax on tobacco which sends users broke or into using the tax free black market run by criminals. The enormous tax does not reduce smoking.
Then there is the issue of no tax on marihuana smokers who make up about 20% of the population. The government could be raking in billions of dollars if they legalized, regulated supply and taxed users instead of criminals getting rich from selling it.
for the past 17 years pensioners on fixed incomes & not working have received a pitance. The main increases being in March & September every year which is totally inadequate. Pensions need an boost of a minimum 10%. Australia can afford it by making the multi-millionaires and multinationals pay tax. A big % pay nothing. And stop the Superannuation rort by increasing the tax and taxing all funds (0.5% of policy holders) with more than $3 million balances.
Totally agree. I’ve said before that one in three companies pay NO TAX, if they started paying tax on profits then that would bring in billions in revenue and pay for so much.
What about the plan to freeze deeming rates for another year?
I SEE NOTHING IN THAT LOT FOR PENSIONERS AS USUAL
WHAT HAS BEEN OFFERERED IS FOR EVERYONE IN AUSTRALIA INCLUDING POLOTICIANS
AS IF THEY CANNOY AFFORD TO PAY THERE ELECTRICITY BILL THEY CANNOT DO SIMPLE MATHS
THERE IS NO WAY %2.4 equals $2.30 increase for pensioners thats half of what everyone else got on the rebate alone
that puts us about %30 behind on welfare payments