Increase of the Assistance for Isolated Children (AIC) boarding allowance

Summary of proposal

The proposal would increase the Basic Boarding Allowance (BBA) under the Assistance for Isolated Children (AIC) Scheme by $4,000 per year. The proposal has 2 options:

  • Option 1: Annual indexation of the BBA would be in line with the Consumer Price Index (CPI) as per the current arrangements.
  • Option 2: Annual indexation of the BBA would be in line with the CPI Education subgroup (CPI Education). The Additional Boarding Allowance (ABA) would also be indexed to the CPI Education.

The proposal would commence on 1 January 2027 and be ongoing.

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Increase of the Assistance for Isolated Children (AIC) boarding allowance

Summary of proposal

The proposal would increase the Basic Boarding Allowance (BBA) under the Assistance for Isolated Children (AIC) Scheme by $4,000 per year. The proposal has 2 options:

  • Option 1: Annual indexation of the BBA would be in line with the Consumer Price Index (CPI) as per the current arrangements.
  • Option 2: Annual indexation of the BBA would be in line with the CPI Education subgroup (CPI Education). The Additional Boarding Allowance (ABA) would also be indexed to the CPI Education.

The proposal would commence on 1 January 2027 and be ongoing.

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Allow income splitting for couples with at least 1 dependent child

Summary of proposal

The proposal would allow couples with a dependent to split their income for personal income tax purposes, so that it appears on their tax returns that they both earn the same amount.

All couples with at least one dependent would be eligible for income splitting. A dependent would be defined as a child aged 18 or younger, or a dependent of any age with a severe disability which requires them to live at home permanently.

The policy would commence from 1 July 2025.

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Removing GST from Insurance Premiums

Summary of proposal

The proposal would make all insurance premiums currently subject to the Goods and Services Tax (GST) GST-free from 1 July 2026. It would exclude life insurance which is currently input-taxed. 

The Commonwealth would compensate states and territories for any decrease in GST revenue. 

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Removing GST from Insurance Premiums

Summary of proposal

The proposal would make all insurance premiums currently subject to the Goods and Services Tax (GST) GST-free from 1 July 2026. It would exclude life insurance which is currently input-taxed. 

The Commonwealth would compensate states and territories for any decrease in GST revenue. 

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A Permanent Energy Bill Relief Plan

Summary of proposal

The proposal comprises 3 components, all commencing on 1 July 2025:

Component 1: Reducing Power Bills for Social and Community Housing
The policy would expand and extend the existing Social Housing Energy Performance Initiative (SHEPI). 

From the policy start date, this component would increase the size of the Commonwealth’s annual commitment to $200 million per year (exclusive of any departmental funding) and extend the commitment to end 5 years after the policy start date (i.e. at the end of 2029-30). 

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Public Service Maintenance

Summary of proposal

The proposal would maintain Australian Public Service (APS) average staffing levels (ASL) at the 2024-25 level from 1 July 2025 onwards. 

The request also sought the forecast APS ASL over the forward estimates and medium term to 2034-35. 

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Public Service Maintenance

Summary of proposal

The proposal would maintain Australian Public Service (APS) average staffing levels (ASL) at the 2024-25 level from 1 July 2025 onwards. 

The request also sought the forecast APS ASL over the forward estimates and medium term to 2034-35. 

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Tasmanian Freight Equalisation Scheme class review

Summary of proposal

The proposal would address ‘class slip’ (where greater proportions of freight come under higher class categories) under the Tasmanian Freight Equalisation Scheme (TFES) Domestic Class framework. Assistance thresholds would be adjusted such that 50% of freight falls within Classes 1 and 2 and 50% falls within Classes 3 and 4.

Class slip has been defined as the gradual shift of claims from the lower to the higher classes, with an increasingly high proportion of claims are at the maximum Class 4 amount per claim of $855.

The proposal would commence on 1 February 2026.

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Breakdown of spending on Maintaining an Effective Foreign Service measures

Summary of proposal

The request sought information on how the funding from the following Budget measures has been used since announcement, and how it is planned to be used across the forward estimates:

  • Maintaining Support for an Effective Foreign Service, Budget 2024-25
  • Maintaining Support for an Effective Foreign Service, Budget 2023-24.

The request also sought as much detail as possible about individual projects under each sub-heading listed in the budget papers, funding, and ASL across each year.

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