Key Points
- Tuesday's federal budget will include a $14.6 billion cost of living package.
- There is speculation about an across-the-board JobSeeker boost, with reports of a $40-a-fortnight increase.
- Millions of households and small businesses will receive financial assistance to tackle rising energy bills.
The federal government's cost of living package will add up to more than $14 billion over four years as speculation intensifies about an across-the-board JobSeeker boost.
The heavily promoted budget package will include , expected to flow to millions of households and businesses.
Investments in and tax incentives for electrification and energy efficiency upgrades will also fall under the total $14.6 billion over four years targeting acute cost of living pressures.
More government plans to support households and businesses through the period of sky-high inflation will reportedly be unveiled in the budget on Tuesday night.
From 20 September, single parents will no longer have to transfer to JobSeeker when their youngest child turns eight.
A base rate of $922.1 per fortnight will apply until their youngest child turns 14.
Parents currently on JobSeeker payments will receive an increase of $176.9 per fortnight, if parliament passes legislation to enact the changes.
Prime Minister Anthony Albanese, who announced the proposed change in Perth on Monday, said children of single-parent families deserved greater support.
"I know first-hand what it's like to grow up with a single mum doing it tough and we want to make sure that the children of single-parent families have the best opportunities in life," he told reporters.
Prime Minister Anthony Albanese said children of single-parent families deserved greater support. Source: AAP
The Greens have already taken aim at the possibility of a $40-a-fortnight increase that would equate to a "paltry" extra $2.85 a day.
The latest reports follow speculation last week that any uplift would be limited to over-55s.
Welfare advocates have warned against any age restriction in JobSeeker increases, saying that over 680,000 young Australians on JobSeeker and Youth Allowance would not benefit from such a policy.
Some young welfare recipients have accused Prime Minister Anthony Albanese of "forgetting where he came from" and of placing vote security over alleviating poverty.
The government also confirmed that millions of households and small businesses will receive financial assistance to tackle rising energy bills in the budget.
According to Treasurer Jim Chalmers, 5.5 million households and one million small businesses will benefit from the cost of living measures.
Although the exact amount has not been revealed, Mr Chalmers stated that it would be "several hundred dollars" and that the sum would depend on the states and territories.
Will there be a budget surplus?
The federal government has also managed to find $17.8 billion in budget savings and shifted spending, with Finance Minister Katy Gallagher accusing the former Coalition government of "tricky budgeting tactics and dishonesty".
"Labor is being up-front with the Australian people about the true state of the books and about the decisions we are making to support those in need and grow our economy," she said.
The total includes $7.8 billion in re-prioritisations already outlined as part of the .
Over the weekend, changes to the petroleum resources rent tax were also announced that, if enshrined into legislation, will bring in an extra $2.4 billion over four years.
Although it is uncertain if the government will deliver a surplus in the budget, it is politically advantageous as it would undermine Opposition attacks over Labor's financial management skills.
