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Millions of Aussies to get $500 energy bill relief, cheaper child care this week

A range of cost-of-living measures are coming into effect on July 1.

Australian money. People walking in the city. Cost-of-living relief concept.
Energy bill relief and cheaper child care are some of the cost-of-living policies kicking in. (Source: Getty)

Millions of Aussies will be getting cost-of-living relief this week when a range of government policies kick in from July 1.

Announced as part of the federal budget, policies coming into effect include energy bill relief, cheaper child care and enhanced paid parental leave.

Treasurer Jim Chalmers said many Aussies were doing it tough right now and the relief would come into effect right when people needed a bit more help.


“The suite of policies, which will start to roll out from Saturday, will make a real difference in the lives of millions of hard-working Australians while delivering an economic dividend and laying the foundations for future growth,” Chalmers said.

“Key policies like energy price relief will directly reduce inflation, while others like cheaper child care and enhanced paid parental leave will boost the capacity of our economy.”

Here’s what is changing for individuals.

Power bill relief

Five million households will be eligible for up to $500 in power price relief, while 1 million small businesses will be able to access up to $650.

Eligible Aussies include pensioners, veterans, seniors and other concession card holders, as well as recipients of the Carer Allowance and Family Tax Benefit.

In NSW, Queensland, South Australia and Tasmania, the total bill relief will be $500 per household.

In Victoria it will be $250, plus the $250 Power Saving Bonus payment, which is open to all Victorians.

In Western Australia and the Northern Territory, the total relief will be $350 per household. In the ACT, it will be $175.

Cheaper child care

Around 1.2 million families will also get cheaper child care through changes to the Child Care Subsidy (CCS).

For the average family earning $120,000 with a child in care three days a week, the changes will cut costs by about $1,700 a year.

CCS rates will rise to 90 per cent for families on a combined income of $80,000 or less. The income limit for CCS will also increase from $356,756 to $530,000.

If you have more than one child aged five or under, you can still get a higher rate for one or more of your children.

Enhanced paid parental leave

New parents will be able to access a combined 20 weeks of paid parental leave, with partnered couples able to split the leave between them. This is expected to benefit 180,000 Aussie families each year.

Parents are currently eligible for 18 weeks of paid parental leave and two weeks of secondary carer leave, both paid at the minimum wage.

The government is planning to expand paid parental leave to 26 weeks by 2026.

Aged care pay rise

Around 250,000 aged care workers will receive a 15 per cent pay rise in the new financial year.

The pay rise will cover registered nurses, enrolled nurses, assistants in nursing, personal-care workers, head chefs and cooks, recreational-activities officers and home-care workers.

Registered nurses on a level 2.3 award wage can earn an extra $10,000 a year, while enrolled nurses on a level 2 award wage can earn an extra $7,500 per year.

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