Chalmers said in a statement the measure would not add to inflation as the government would continue working towards the target range of 2 to 3 per cent.

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“Treasury estimates the government’s energy bill relief and additional increase to Commonwealth Rent Assistance will directly reduce inflation by half of a percentage point in 2024-25 and are not expected to add to broader inflationary pressures,” he said.

“We know there’s more to do in the fight against inflation because people are doing it tough and that’s why we’re rolling out more responsible cost of living relief from September at the same time as we turn big Liberal deficits into Labor surpluses.”

From Sunday, a third group of medicines will be available as 60-day prescriptions to reduce the number of times people need to see their doctors.

It includes medicines that treat acne, anxiety disorders, asthma, constipation, depression, gastro and Parkinson’s disease.

Health Minister Mark Butler first announced extending prescriptions from 30 to 60 days in last year’s federal budget, which triggered months of tension with pharmacy owners who would lose income from dispensing fees under the scheme. Labor struck a $3 billion deal with the industry in March.

In a statement, Prime Minister Anthony Albanese said the measures would deliver real cost of living relief while Australians were financially struggling.

“This is real cost of living relief, putting more money back into people’s hip pockets,” he said.

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