Reactions from everyday Australians on cost of living, housing, and tax reforms
We spoke to Australians about their hopes and concerns before and immediately after Jim Chalmers delivered his fifth budget.
Here’s what they told us.
Kate Heussler
Freelance modeling trainer, 42, Sydney’s northern beaches. Income: $150,000.
Budget wish list: Heussler, who lives with his seven-year-old daughter Penelope, bought his first home last year using the first home buying programme.
“When people talk about mom and dad’s bank, I say, ‘What is this? I’ve never experienced anything like this.'”
He hoped the budget would provide greater benefits to single parents and others struggling with the rising cost of living.
Budget response: While Heussler understands that the government has to deal with extraordinary global instability, he would have liked to see more support for single parents and homeowners in this budget.
“I haven’t seen anything disappointing for single mothers or fathers. But for me, it’s a good start,” he said.
“I think they did the best they could, given the many circumstances that were completely out of their control.”
Rex Zhang
Academic, 29, inner west Sydney. Income: $80,000-$90,000.
Budget wish list: Zhang teaches at various universities to cover the $420 weekly rent for his property in Glebe.
“Rent has increased significantly since 2022, and 2023-2023 was the year when the craze started,” Zhang said.
He wanted the budget to put downward pressure on rental prices.
Budget response: Zhang welcomed negative guidance and capital gains reforms as the beginning of a “positive direction” towards solving the housing crisis, although he welcomed more targeted aid for renters.
“It’s nice to see, it’s better than nothing,” Zhang said. “It will help hold accountable those who are contributing to this crisis affecting young Australians.”
Brad and Elaine Seeto
Accountants, 45, from Sydney’s northern suburbs. Income: $500,000 total.
Budget wish list: Brad Seeto admits most Australians are having a harder time than him due to the cost of living crisis.
He wanted to see income tax reform in this year’s budget.
“There are people with engine rooms [of the economy] We pay the most taxes. “They are being attacked from every corner.”
Budget response: Seeto was disappointed with the tax reforms announced in the budget and believed that middle-income earners would continue to be “brought to their knees”.
He wanted to see more measures targeting Australia’s richest, who he believes will not be harmed by the recent announcements of negative gearing and capital gains tax.
“The tax is meant to be redistribution to provide a safety net, and some of that market is rich and I don’t think they pay enough.”
MaximilianFlynn
Environmental engineer, 27, inner south-east of Melbourne. Income: $100,000.
Budget wish list: To save for a house deposit, Flynn and his partner moved in with his parents and cut back on driving and entertaining.
The government’s five per cent deposit scheme, aimed at helping first home buyers, had paradoxically made house hunting more challenging because it was likely to “increase” house values in his price range, Mr Flynn said.
Flynn said he hoped the budget would address the negative effects: “This benefits a bunch of very wealthy people and it certainly affects our ability to buy homes.”
Budget response: Flynn said Tuesday’s budget makes him more hopeful that he won’t be competing with so many investors.
“Generally speaking, all the changes to capital gains tax and adverse practices have really been a big ask of young people for a long time,” he said.
“I was absolutely excited about the opportunity when Bill Shorten suggested it. I think it makes perfect sense for it to finally happen.”
Rachel Medlock
Copywriter, 33, from Melbourne’s northern suburbs. Income: $90,000-$110,000.
Budget wish list: Medlock’s son Sonny is autistic and receives support through the NDIS.
The rising cost of living disrupted his and his partner’s plans to save for a house deposit because they had little left to save.
Medlock worries Sonny will be among the 160,000 people missing out on the program.
Budget response: Medlock was disappointed with Tuesday’s budget.
He was incredibly disappointed to hear that the majority of the savings would come from the NDIS.
“Autism is a significant and permanent disability. It’s not something that goes away as the child grows up. Autistic children grow up to be autistic adults, so it’s absolutely frustrating to hear that they’re going to have to bear the brunt of this.”
Mitch Burnie
Landscape gardener, 32, south-east Sydney. Income: $100,000.
Budget wish list: Burnie, who lives with his wife and two-year-old child, bought an electric vehicle about a year ago after learning about the renewed lease agreements.
“I thought it made a lot of sense. We always wanted an electric vehicle but didn’t have $100,000 to buy it outright,” he said.
The Sydney man hoped EV tax incentives would be kept in the May budget given the ongoing fuel crisis: “I have rarely seen a government policy make such a tangible difference [to my household finances].”
Budget response: Burnie is a bit disappointed that the EV tax breaks have been rolled back.
If he were in the same situation today, he said, “I probably wouldn’t be able to afford it.”
Starting April 1, 2027, electric vehicles priced between $75,000 and $91,387 will receive a 25 percent reduction in fringe benefit tax, down from the current 100 percent reduction. Existing leases will not be affected by the changes.
David Warburton
Small business owner, 40, Bacchus Marsh. Income: $150,000.
Budget wish list: Warburton owns a small mortgage broker and lives with his two children, aged seven and three.
He hopes the government will avoid further cost-of-living aid that could push inflation even higher.
“I think it feels good temporarily, but then in six, 12 months we’ll be having the same old conversation.”
Budget response: Warburton was pleasantly surprised when the government announced it would make instant asset write-offs permanent.
“Wiping really helps when a business needs new equipment, a new device or something like that. It gives businesses the confidence to make those big purchases.”
He wasn’t quite convinced about the tax cut for working Australians: “I don’t think anyone would be excited about more than $250. That’s not actually enough to help anyone and could also potentially cause inflation.”
