As the federal budget is revealed, how does this impact young Aussies.
Millennials and Gen Zers sometimes get a bad wrap when it comes to budgeting and spending in the Australian media, often thanks to avo on toast memes or comments about our inability to take 6 months off made by popular personalities. Regardless that Millennials and Gen Zers find things like this laughable as well, research shows that both cohorts are spending money more wisely and budgeting better than previous generations.
Not knowing whether to laugh or cry every time a headline pop ups about a house price increase, you can’t help but wonder if home ownership and financial stability are goals that young Australians simply won’t be able to kick.
With the Albanese government releasing their federal budget this week, we’ve detailed our top 4 takeaways that are going to impact Millennials and Zoomers in the coming years.
In welcome news to Millennial parents, the government intend to provide financial relief to young families by increasing the amount of paid parental leave and subsidising childcare costs. For stay-at-home mums or dads who had to use all their annual leave sparingly to keep a roof over their heads, they will now be eligible to receive an additional 6 weeks of paid parental leave under the new scheme. Additionally, new changes to the childcare subsidy will allow parents of children under 5 to return to work sooner and not be financially penalised.
We’re sure we speak for many when we say this, but…we’ll believe that when we see it (so cynical sometimes aren’t we).
The government plans to deliver several initiatives to help Aussies struggling with housing affordability. The most important one to take note of for Millennials and Zoomers is the Regional First Home Buyer Guarantee and the Help to Buy scheme. The government will assist 10, 000 eligible first home buyers in regional Australia by guaranteeing up to 15% of the purchase price. Help to Buy will be available to 10, 000 Australians each financial year and buyers will need a minimum deposit of 2%, and the government will contribute either 30% or 40% based on whether it is a new build or an existing home.
If there’s anything the ‘Great Resignation’ and the 2022 Jobs Summit has taught us it’s that Australia is facing a serious lack of skill shortages, especially in healthcare, technology and education. With the budget introducing 180,000 free TAFE and vocational courses in 2023, and expanding university places by over 20,000 in the coming 2 years, there is great potential for young Aussies to focus on upskilling in a new field.
Was it Greta Thunberg’s powerful speech to world leaders, or was it simply a situation that could no longer be ignored? Whatever it was…it’s about damn time (please don’t sue us Lizzo)!
The Labour government have committed $20 billion dollars to fund an urgent upgrade of Australia’s electricity grid to unlock new renewable and clean energy, and the allocation of $20 million to disaster management as we unlikely will experience a decrease in the occurrence of natural disasters in the coming years. Thanks to 9/10 Millennials and Gen Zers making environmentally conscious and sustainable choices every day…this one is a big win!
Anyone scoffing at the term ‘a bread-and-butter budget’ clearly doesn’t understand how good hot toast with melting butter after a night out can be.
Even though the Treasurer has stated that this budget is basic, it seems promising that the government are legitimately hoping to tackle some really important issues facing young Aussies and provide some well needed financial support. With cost of living pressures rising, and electricity forecasted to grow as much as 20% this quarter and another 30% next financial year, some of these changes will likely be welcomed with a big sigh of relief…if the government can pull it off.
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