Episode Transcript
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Speaker 1 (00:00):
Hello, my name's Santasha Nabananga Bamblet. I'm a proud Yr
the Order Kerni Whaltbury and a waddery 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 a wondery country,
acknowledging the elders, the ancestors and the next generation coming
(00:22):
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.
Speaker 2 (00:34):
She's on the Money, She's on the Money.
Speaker 3 (00:57):
Hello, and welcome to She's on the Money. The podcasts
for people who want to understand what the federal budget
actually means without having to read three hundred pages of
economic jargon, because you know your finance Best DVD is
just going to do it for you. Maybe you want
to know if your heck step is going to shrink.
Maybe you're wondering if rent relief is coming, or whether
(01:18):
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
(01:39):
a special bonus episode. I'm recording straight from my hotel
room in Canberra. I literally just got back from Parliament House,
and I am breaking down the twenty twenty five 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
(02:01):
every single part of your financial life, whether you're renting
or trying to buy a home, or raising a family,
or studying, or your 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
(02:24):
to day, and I'm bringing you a little bit of
a wrap that you can listen to, maybe while cleaning
the house or walking the dog, or procrastinating something that
you probably should be doing. This 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
(02:46):
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
(03:08):
outlines exactly what the current government 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
(03:29):
of these measures. That means the hextet relief, energy build 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.
(03:51):
When I get my hands on it. The important thing
to understand is what each party is actually offering before
we vote the budget. It gives us a really clear
look at what Labour 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
(04:13):
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
(04:34):
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 going to affect your life, and
where they sit on issues that actually matter to you most.
(04:57):
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 two point four percent. That's a big drop
from the seven point eight percent peak in twenty twenty two,
(05:20):
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 nine percent on essentials like rent and food
and transport and health compared to last year. We I
would say, are still in a squeeze when it comes
(05:42):
to tax cuts. From July twenty twenty six, the tax
rate on income between eighteen thousand, two hundred dollars and
forty five thousand dollars will drop down sixteen cents per
dollar to fifteen cents. Then from July twenty twenty seven,
it will drop a gain to fourteen cents. This means
if you earn over forty five thousand dollars, you'll see
(06:05):
a tax cut of around two hundred and sixty eight
dollars in the twenty twenty six twenty twenty seven 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 seventy five dollars discounts on
(06:28):
their electricity bills, one for each quarter. That's one hundred
and fifty dollars in total. You don't need to apply,
it's actually just going to appear as a credit for you.
Around one million small businesses are also going to benefit. But,
and this is important, there is nothing in the budget
that stops energy companies from raising their prices. So while
(06:49):
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 eight point five billion dollars into Medicare to increase
bog billing rates. Their goal is to make ninety percent
(07:11):
of GP visits free by twenty thirty. They are also
reducing the maximum cost of medications on the PBS from
thirty one dollars and sixty cents down to twenty five dollars.
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
(07:33):
hex and Help debt. A lot of you are here
for this now. This got a lot of attention in
the media this week student debt. The government has promised
to wipe twenty percent of all outstanding hex and Help
debts from the first of July twenty twenty four. That
sounds very sexy. Keep in mind that is only if
(07:56):
they are re elected. If your debt is paid off
before that day eight Unfortunately, you are not going to
receive the discount. It only applies to what you still
have owing on the first of July this year. The
change is expected to remove around sixteen billion dollars in
student debt across the country. They are also changing how
(08:17):
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 HEX from growing faster
than your salary. And I love to see it. This
is new and something I didn't care so much about
historically personally, that is childcare. This budget includes a major
(08:42):
investment in childcare. Families earning up to five hundred and
thirty thousand dollars a year combined can access three days
of subsidized care per week. This costs the government approximately
fifteen point four billion dollars by mid twenty twenty five,
and it's actually expected to rise to eighteen point four
(09:03):
billion every single year from twenty twenty eight. For families
who are already using childcare. 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
(09:24):
ad in here so that I can keep bringing 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
(09:47):
since the pandemic. House prices have risen by thirty eight
point four percent, and rent you're not surprised here, is
up thirty seven percent. 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 thirty
(10:08):
to thirty four has dropped to fifty percent. In nineteen
seventy one, it was sixty four percent. This budget includes
an extra one billion dollars to housing, bringing the government's
total commitment to thirty three billion dollars. Their target is
to build one point two million new homes by twenty thirty.
(10:28):
To speed things up, they are also funding modular and
prefabricated homes that can be built up to fifty percent
faster than traditional construction. Now, my first home buyers, the
Help to Buy scheme is going to be getting an
eight hundred million dollar boost and it will be open
(10:48):
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 as a deposit or a mortgage.
And I have a lot of things to say about that.
Eligibility includes individuals earning up to one hundred thousand dollars
a year and couples or single parents earning up to
(11:11):
one hundred and sixty thousand dollars. Property price caps are
going to vary state by state. In New South Wales,
for example, homes up to one point three million dollars
are going to be eligible in the cities and up
to eight hundred thousand dollars in regional areas. The government
is also investing seventy point nine million dollars to support
(11:33):
First Nation's 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
(11:56):
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 increases to Commonwealth rent assists, though
housing advocates have been pushing for more direct support. Fair
(12:17):
Let's talk about crisis housing and homelessness. The budget has
included two point five million dollars 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 six point five million dollars that will fund research
and policy advice to improve housing security for people at
(12:40):
risk of homelessness as well. So I guess what are
you thinking? 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 health care. There was so much
more in the budget than what I have recapped, but
(13:01):
I have just pulled out what headlines I think are
really appropriate for you to understand if you're consuming Shee's
on the Money content, So if that's for you, I
would recommend going and checking out the Daily Os. 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
(13:24):
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. This means that being informed. It's
(13:46):
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 somebody
who just explains it without bias or narrative, like I am,
actually not during any of this process going to be
(14:07):
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
(14:29):
nerd and I would love that 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.
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