Young Australians at university will receive a welfare boost on January 1, more generous than the latest inflation rate – as part of a raft of changes to New Year’s Day rules.
From next Monday, the import of disposable flavored e-cigarettes will be banned and new natural gas connections will not be available to Victorian residents.
A series of fortnightly Centrelink payments – including Youth Allowance, Austudy, Abstudy and the Disability Support Pension – will jump as part of the annual indexation adjustment benefiting 936,000 Australians.
These beneficiaries are getting a big boost, above the recent inflation rate, as the Reserve Bank’s inflation rate increases have hurt middle-aged home borrowers struggling with rising mortgage repayments.
Controversial new land taxes to pay for extended coronavirus lockdowns in Melbourne have also come into force. Meanwhile, NSW will scrap a generous $3000 rebate on electric cars.
Here’s what the new year could mean for you during the cost of living crisis.
Centrelink promotion
A series of Centrelink payments will jump by 6 per cent – and the biggest winners will be young people’s allowance recipients living with their parents.
Youth Allowance for teenagers under 18 living at home will rise by $22.40 to $395.30 every two weeks – in line with the school absenteeism rate for those of the same age.
Those living away from home and studying, aged 18 to 24, will see their Youth Allowance or Austudy payments rise by $36.20 to $639.
Youth Allowance covers people aged 16-21 who are looking for full-time work, those aged 18-24 who are studying full-time and those aged 16-24 doing vocational training.
Young Australians at university get a welfare boost on New Year’s Day, more generous than the latest inflation rate (pictured are UNSW Labor students)
The Disability Support Pension for those under 18 living at home rises by $31.10 to $548.80.
People ages 18 to 20 get an increase of $34.50, to $608.70.
Australians with a disability who live independently will see their payments rise by $44.90 every fortnight to $792.50.
The 6 per cent increase is much more generous than the latest inflation figures – inflation in the September quarter was 5.4 per cent, and the monthly rate for October was 4.9 per cent.
This is because some welfare payments are linked to the annual CPI for the June quarter, which has since fallen after the Reserve Bank in November raised interest rates for the 13th time in 18 months.
Social Services Minister Amanda Rishworth praised the 6 per cent welfare increase which will help 936,000 people.
“The Australian social security system is a safety net that is constantly being strengthened and improved to support all vulnerable Australians,” she said.
“Through regular indexation, our payments are adjusted in line with changes in the cost of living to retain purchasing power.”
Ban on electronic cigarettes
From Monday, it will no longer be possible to import disposable e-cigarettes into Australia, with the government set to halt the sale of flavored devices in convenience stores.
This will apply to Disposable e-cigarettes regardless of nicotine content or therapeutic claims.
The rules will make it illegal to import disposable e-cigarettes on or after January 1, even if those e-cigarettes were ordered before that date and have not yet arrived in Australia.
Health Minister Mark Butler only announced the measure on November 28, arguing that it was necessary to prevent teenagers from becoming addicted to nicotine.
From Monday, it will no longer be possible to import single-use e-cigarettes into Australia, with the government set to stop selling the flavored devices in convenience stores (pictured stock)
‘He said these reforms would protect Australians, especially young people, from the harms of e-cigarettes and nicotine dependence.
The federal government has reached an agreement with state and territory health ministers, almost all of whom are part of Labor except Tasmania.
The importation of e-cigarettes is banned by regulation, meaning Mr Butler can issue an order, subject to the approval of Governor-General David Hurley, for Parliament to pass new law to impose a permanent ban.
This ban will also coincide with A new pathway to the Special Access Program enables doctors and nurses to prescribe e-cigarettes to those suffering from nicotine addiction.
The import ban on non-therapeutic e-cigarettes goes into effect on March 1, which means importers must Obtaining a customs license and permit to import therapeutic cigarettes with mint, menthol and tobacco flavours.
From that date, convenience stores will be able to continue selling them provided they do not contain nicotine and do not make any medical claims.
Australian Bureau of Statistics figures released shortly before Christmas showed 14.4 per cent of adults had tried e-cigarettes or e-cigarettes.
Daily smoking rates fell to 10.6 per cent in 2022, less than half from 22.4 per cent in 2001 – with 58.3 per cent of adults revealing they had never smoked.
But there are fears that young people are turning to e-cigarettes as the popularity of cigarettes declines, as tobacco is only allowed to be sold in faded olive green packaging with pictures of diseased body parts.
Gas ban
The Labor government in Victoria is banning new natural gas connections from 1 January.
This means new homes, apartments and residential subdivisions will not be allowed to connect to gas when the change in state planning rules comes into effect.
The Labor government in Victoria is banning new natural gas connections from 1 January. This means new homes, apartments and residential subdivisions will not be allowed to have gas connected when the change in state planning rules comes into effect (pictured stock photo)
Existing gas connected homes and homes being renovated will not be affected.
Former Premier Daniel Andrews announced the ban in July, just weeks before he announced his resignation as state leader after nine years in the job.
The controversial former leader had sought to halve Victoria’s carbon emissions by 2030.
In addition to residential housing, any new public buildings that have not yet reached the design stages by the deadline – including schools, police stations and hospitals – will have to be fully electric.
Some studies have linked natural gas to childhood asthma.
The Grattan Research Institute said Australia will fail to meet its goal of cutting carbon emissions by 2050 unless gas appliances are replaced with electric appliances.
EV discount expires
New South Wales’ $3000 electric vehicle rebates end on January 1, with Labor rescinding generous policies introduced by the previous coalition government.
New South Wales’ $3000 electric vehicle rebates end on January 1, with Labor rescinding generous policies introduced by the previous coalition government (pictured Tesla Model 3)
The first 25,000 motorists who purchase an electric vehicle worth up to $68,750 are eligible for a $3,000 rebate.
Stamp duty relief was also available for electric vehicles worth less than $78,000.
This means those who buy a Tesla Model Y or Model 3 could receive $2,537.50 in stamp duty relief and a $3,000 rebate – making a total of $5,540.
But as of January 1, the $3,000 rebate for electric and hydrogen cell cars will end.
Motorists who have purchased or deposited a car, but not yet delivered it, are still eligible for the rebate.
Those who purchased an electric vehicle before January 1 have until June 30 of next year to apply for a rebate proving the deposit or make a purchase..
High land tax in Victoria
Temporary land tax increases in Victoria will come into effect on January 1 and last until 2033 to pay for world-record lockdowns in Melbourne.
The average owner with $650,000 of land will pay $1,300 per year.
A new surcharge of $500 will come into effect on land properties valued between $50,000 and $100,000, when the previous land tax limit was $300,000.
A tax of $975 will apply to land valued between $100,000 and $300,000.
Temporary land tax increases in Victoria will come into effect on January 1 and will last until 2033 to pay for Melbourne’s record global lockdowns (pictured Treasurer Tim Palace)
For land values over $300,000, there will be an additional fee of $975 plus 0.1 percent for every dollar over $300,000.
The family home will be exempt from this temporary land tax surcharge.
Delivering his ninth Budget in May, State Treasurer Tim Ballas announced that the wealthy would pay a two-part “Covid debt tax” — targeting landlords and businesses in a bid to raise $8.6 billion over four financial years.
Labor is raising taxes on businesses, landlords and private schools in a bid to pay off – over 10 years – the $31.5 billion Covid debt accumulated during the pandemic.
Reducing fees
NSW motorists who spend more than $60 on tolls will receive the remaining amount, up to a weekly maximum of $340.
Drivers can start collecting their receipts from January 1, with claims submitted quarterly from April 2024.
The previous scheme offered a 40 per cent rebate, up to a maximum of $802 per financial year, to drivers spending more than $402 a year. This scheme ends on June 30.
Cost of living
While inflation has eased, Sally Tyndall, RateCity’s research director, said the cost of living crisis remains painful, even with the changes made on January 1.
She added: “Inflation may be slowing, but that does not mean that the cost of most goods and services is falling now, but they are not rising as quickly as before, so keep that in mind when planning your budget for 2024.”