Federal budget to help with cost of living

June 2026 The federal budget handed down on 12 May 2026 focuses heavily on easing cost-of-living pressures for Australians amid rising global oil prices linked to the Middle East crisis. Treasurer Jim Chalmers said the government aimed to reduce the impact of higher living costs through tax relief and support measures. A major initiative is the new Working Australians Tax Offset (WATO), which will provide up to $250 annually from the 2027–28 financial year. The measure effectively raises the tax-free threshold and is expected to benefit more than 13 million workers. Combined with previous tax cuts, an average worker earning around $81,000 could receive annual tax relief of almost $2,500 by 2027–28. The government is also introducing a new instant tax deduction of up to $1,000 from 2026–27. Workers will be able to claim this amount for work-related expenses without needing receipts, reducing paperwork and simplifying tax returns. About 6.2 million taxpayers are expected to benefit, with average savings of $205. Further tax cuts are planned over the next two years. The tax rate for incomes between $18,201 and $45,000 will drop from 16 per cent to 15 per cent in 2026, and then to 14 per cent in 2027. The government says these changes will help offset bracket creep and provide ongoing financial relief. The budget also includes health support measures. Medicare levy low-income thresholds will rise by 2.9 per cent, helping more than one million lower-income Australians. In addition, $5.9 billion will be invested in cheaper medicines through the Pharmaceutical Benefits Scheme, including treatments for cancer, kidney disease and cystic fibrosis. While there were no major new pension measures, older Australians will benefit from cheaper medicines, higher Medicare levy thresholds and expanded aged care funding, including more aged care beds and support services.

Greek Tribune Adelaide, South Australia