Budget 2023: Jim Chalmers fills in for the Barefoot Investor and gives advice on rent relief
Jim Chalmers attacks a landlord for raising a single mom’s rent by $150 a week, as she begs him as he fills in for the Barefoot Investor, “How will I survive?”
- Federal budget will be delivered by Labor on Tuesday
- Treasurer Jim Chalmers answered tenant’s question
Treasurer Jim Chalmers has labeled a $150-a-week rent increase dumped on a single mother by her landlord as “ridiculous.”
Dr. Chalmers this week filled in for Scott Pape, better known as the Barefoot Investor, on his financial advice column before the federal budget was handed over Tuesday.
“I’m a single mom with two kids, two cats and a dog and I’m really struggling,” explains the woman named Emma.
“My landlord just informed me that he’s going to raise the rent by $150 a week because of the ‘housing market changes’. How will I survive?’
She added that she just got a new job but will lose her tax break as she goes from four days a week to five days.
Treasurer Jim Chalmers (pictured) disapproved of a $150-a-week rent increase that a landlord gave a single mother of two. He will deliver his first federal budget on Tuesday
Barefoot Investor Scott Pape handed over the reins of his column to Mr. Chalmers this week
She also said that despite the fact that she will soon earn $100,000 a year, she is already finding it difficult to support her family and will probably have to pay more for after-school care because of her higher income.
“I just pay for everything, what should I do?” she said.
Dr. Chalmers made no bones about it in his answer, saying, “$150 a week is ridiculous.”
He suggested that an increase by that much was a money grab, using the rental market as an excuse.
“It’s worth talking to your local tenants union to find out what your options are,” he said.
“The options vary depending on the state you are in, but may include reporting excessive increases to a relevant government agency.”
“We recognize that rent is a big part of the pressure people are feeling right now.”
He said his Labor government was trying to get parliament to agree to more properties being built.
“Some tax breaks are coming up so that investors can build more homes and, moreover, we will make your after-school care cheaper from July 1 by increasing the subsidy.”
Tenants complain that the market in the capitals is extremely competitive (Photo: People queue up to apply for a rental in Sydney)
Separately, the government announced on Monday that single parents will no longer have to switch to JobSeeker from September 20 if their youngest child turns eight.
A base rate of $922.10 per fortnight applies until their youngest child turns 14.
Ten years ago, the Gillard government lowered the age limit from 16 to 8.
Parents currently on JobSeeker will receive an increase of $176.90 every two weeks, if parliament passes legislation to pass the changes.
Prime Minister Anthony Albanese, who announced the proposed change in Perth on Monday, said children of single-parent families deserved more support.
“I know firsthand what it’s like growing up with a struggling single mother and we want to make sure that the children of single-parent families have the best opportunities in life,” he told reporters.
Dr. Chalmers said the budget would balance the cost of living with responsible spending management.
“We’re confident that what we’ve done here provides a cost-of-living relief for people who are struggling, but are aware that we have this inflationary challenge in our economy,” he told ABC Radio.
“We have to be responsible for what we spend, and we did.”
In addition to rolling out energy bill relief, cheaper medicines and tax incentives for electrification and energy efficiency upgrades, the government has found $17.8 billion in savings.
There is also expected to be $2.4 billion in additional revenue from taxes on offshore LNG producers.