The federal government says the October budget will deal with cost-of-living pressures facing Australian households.

Yesterday the Reserve Bank lifted interest rates for the 5th month in a row.

The official cash rate has risen by another half-a-per cent and now sits at 2.35 percent.

Treasurer Jim Chalmers has told Parliament he knows this latest hike won’t be easy for families and the upcoming budget will reflect the pressures.

It comes as the Government announces a reduction in the price of prescription medicines from next year, at a cost of almost 800-million-dollars.

During the election campaign both Labor and the Coalition made a pledge to slash the price of drugs listed on the Pharmaceutical Benefits Scheme.

The Albanese Government will today introduce legislation which will reduce the cost by almost 30 per cent,  with the maximum price for a script dropping to 30-dollars.

The new rate will come into effect from the first of January 2023, and will cost the federal budget 765-million-dollars over the next four years

Meantime,  the Federal Government has a unique support package for pensioners as part of a longterm plan to help address Australia’s housing crisis.

Pensioners will be offered financial incentives to downsize, in an effort to free up housing stock.

Their pension won’t be affected for two years after they’ve sold their home, giving people an extra 12-months to find a new property.

The deeming rate will also be slashed to a quarter-of-a-percent, down from two-and-a-quarter per cent.

Social Services Minister Amanda Rishworth says the legislation will help address Australia’s housing crisis.

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