Albanese links new energy plan to cost of living crisis

Tax cuts and reductions in energy bills are set to come into effect, and the government is also preparing to roll out plans to make Australia a renewable energy superpower.

Every taxpayer will keep a little more of the money they earn on Monday as a long-planned third phase of tax cuts takes effect, along with other measures aimed at easing the cost of living crisis.

Some economists warn that the tax cuts could increase inflation, which could prompt the Federal Reserve to keep interest rates higher for struggling households or even raise them.

However, with annual inflation reaching a six-month high, consumers are feeling the effects of the crisis and are likely to be more willing to accept higher after-tax incomes.

“July is a great month for working people after years of struggling with cost-of-living pressures made worse by big business price gouging,” said ACTU secretary Sally McManus.

Prime Minister Anthony Albanese said his government is focused on tackling cost of living issues in the short term while trying to grow the economy.

The Government will use the final week of Parliament before the winter recess to incentivise clean energy projects by introducing Future Made in Australia legislation.

“(It’s) very important in terms of the future development of the economy, how we get clean energy jobs and how it helps create advanced manufacturing,” Albanese said Sunday in Melbourne.

Consumers will also be able to get some relief on their electricity bills – households will receive a $300 rebate on their electricity bills, calculated in four quarterly deductions of $75 each.

Energy prices have skyrocketed, leaving many people, especially those receiving welfare benefits, unable to pay their bills.

Energy Minister Chris Bowen rejected suggestions the introduction of the rebate showed the government’s attempts to lower electricity prices had failed.

“This is practical support that is now intended to complement our deployment of the cheapest form of energy, which is renewable energy sources,” he said.

The opposition said the government had to admit defeat in the fight against inflation, which hit four percent last week, causing turmoil on financial markets.

“The Albany Labor government has utterly failed to address the root cause of Australia’s cost of living crisis – inflation,” Shadow Treasury Minister Angus Taylor said on Sunday.

“We have had three failed Labor budgets and Australians cannot afford another one.”

Paid parental leave will be extended to 22 weeks from Monday, then to 24 weeks in July 2025 and then to 26 weeks from July 2026.

Australia’s lowest-paid workers will receive a pay rise of 3.75 per cent, which means a wage increase of 87 cents an hour to $24.10, or $915.91 for a 38-hour week.

Trade unions demanded higher pay rises, while business groups argued for smaller pay rises, saying they could not afford the rising costs.

The tax cuts complete a series of changes planned by the Morrison government in 2018, and there are already calls for more changes to be made to avoid tax creep, which will cause tax bills to rise again over time.

The lowest tax rate for people earning PLN 45,000. dollars or less will drop from 19 to 16 percent.

The 32.5% rate will be reduced to 30% for people earning up to $135,000.

People earning above this amount will pay 37 percent tax, and the highest tax bracket will be at $190,000, not $200,000.

The average worker will receive a cut of $1,888 per year, or $36 per week.

Other changes that will come into effect on Monday include an increase in the pension guarantee rate to 11.5 percent.

A nationwide ban on synthetic stone begins. Almost 600,000 Australian workers will be exposed to silica dust.

Modeling from Curtin University projects approximately 10,000 people will develop lung cancer directly related to silica dust.

Under the reform passed by the federal parliament last week, e-cigarettes will only be able to be sold in pharmacies.