Tuesday night’s Federal Budget delivered a mixed bag for Australian families, and for many single mothers already balancing rising grocery bills, rent, childcare and fuel costs, there’s some welcome news and some disappointments.
While the government announced new tax cuts and cost-of-living measures for workers, many single mothers will find the support falls short, particularly if they are renting or relying on income support payments.
With inflation continuing to stretch household budgets and global tensions pushing up fuel and living costs, here’s what the latest Budget means for single mothers.
What could help single mothers
Changes to Child Support
$182.6 million to make the Child Support Scheme safer so our children get the financial support they need and women are protected from conflict and abuse. This money, over four years, will overhaul the child support system, starting 1 July 2027, with the aim of enhancing safety and reducing financial abuse. Key reforms focus on limiting system weaponisation, improving compliance, increasing employer withholding, and stricter enforcement for unpaid child support.
While this does not address the formula that determines the child support due, and it does not de-link child support from Family Tax Benefit, it should mean that there needs to be no contact between the parties if one doesn’t want it, cutting out the opportunities for continuing abuse. There are also steps to ensure the income of payers is accurate, and that those who try to dodge are caught and penalised.
It is a start to much-needed reform and the government acknowledging the need to support victims of financial abuse. They have also allocated Legal Aid funding to address gaps in the current system. Women’s Agenda has an excellent analysis of this measure.
New tax relief for working parents
If you’re employed, there is some (fairly minor) financial relief on the horizon.
The government announced a new Working Australians Tax Offset, which will provide eligible workers with up to $250 from the 2027–28 financial year.
From July 2026, the tax rate for earnings between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, before dropping again to 14 per cent in 2027. For single mothers working part-time, casually or returning to the workforce after caring responsibilities, the changes may slightly improve take-home pay over time.
Another practical change is a new $1,000 instant work-related tax deduction from 2026–27, meaning workers won’t need to keep receipts for smaller deductions.
More support for first home buyers
Single mothers hoping to buy their first home (which is far too few of us) may also benefit from changes targeting property investors.
The government expects reforms to capital gains tax and negative gearing will make it easier for around 75,000 Australians to enter the housing market by reducing investor competition.
However, experts warn renters may feel pressure elsewhere, with rents tipped to rise modestly as some investors leave the market.
Areas where single mothers are left behind
No increase to JobSeeker or Parenting Payment Single
One of the biggest disappointments is the lack of any major increase to JobSeeker, Parenting Payment Single or most payments and pension.
Single mothers raising children, seeking work or working limited hours, or studying will continue to have to get by on payments that are far below the cost of essentials.
Furthermore, all those who are trying to survive solely on our social security system and not currently working will miss out on the government’s new $250 worker tax rebate.
International travel will become more expensive
Families planning overseas travel or visiting relatives abroad will face higher costs from 2027, when the Passenger Movement Charge increases from $70 to $80 per traveller.
With airfare prices already high, this may place further pressure on single-income households trying to budget for holidays or family visits.
Rising living costs still a major challenge
Although the Budget includes targeted relief measures, many everyday expenses continue climbing.
Fuel prices remain unpredictable due to international conflict and supply pressures, while groceries, utilities and housing costs continue placing strain on household finances.
For many single mothers, especially those renting or managing on one income, the broader cost-of-living crisis remains largely unresolved.
Housing support for young people
Young people leaving care or home to study, work in an apprenticeship, or for any other reason, face additional difficulties if they are from low- to mid-income families, or have no family support. They have been facing what is referred to as “the youth housing penalty”. This is caused by the community housing providers (CHPs) receiving lower rent (up to 46% less) when housing young people (16–24) on low income support, compared to adults. This disparity caused CHPs to favour older tenants, leaving under 3% of social tenancies for youth, despite high homelessness rates.
In this budget, the government has provided a $60M Youth Housing Supplement which is a top-up payment to help young people on low incomes access community housing. This will benefit the over 4,000 young people aged 16–24 who are at risk or experiencing homelessness, particularly recipients of the “Away from Home” rate of Youth Allowance or ABSTUDY.
Other major Budget changes
The Budget also included:
- $5.9 billion to list new medicines on the PBS, (e.g. treatments for cystic fibrosis, chronic kidney disease, some cancers)
- Government has recommended the Fair Work Commission award an economically sustainable real wage increase to Australia’s award workers.
- $21 billion in wage rises for women working in sectors like aged care and early childhood education
- $11.4 billion to incentivise bulk billing, with a goal of ensuring nine out of ten GP services are bulk billed by 2030
- The government‑funded Paid Parental Leave will increase to a full six months of national minimum wage for anyone having (or adopting) their baby after 1 July 2026 – and have 12% superannuation paid too.
For single mothers who are employed, the Budget offers modest tax relief in coming years. However, those who are renting, already stretched by rising living costs, relying on Centrelink payments and/or searching for work, many of the immediate financial pressures remain unchanged.
What does this mean for CSMC? There is still a lot of work to do to persuade governments that a key place to start correcting the intergenerational inequity that exists in Australia now would be working with single parents and their children.
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