Australia news live: Jetstar to charge passengers for overhead baggage; Labor drops so-called ‘widow tax’

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Jetstar is changing its carry-on baggage policies and will charge customers for use of the overhead compartments on its aircraft.

The airline said it would remove the 7kg carry-on weight limit for bags from February 2027 and instead allow customers to bring one underseat bag like a backpack or handbag.

Anyone wanting to use the overhead lockers would need to buy “priority carry-on”, which includes a second, larger bag and the chance to be among the first to board. The fees will start at $25 one-way on short flights and can vary upwards of $52 for long-haul routes.

Jetstar’s CEO said the decision came amid frustration from passengers and crew that have struggled to access the overhead bins:

By giving customers an underseat bag with the option to add Priority Carry-on, we can make better use of overhead locker space, streamline boarding and help more flights depart on time.

Our new carry-on baggage model provides more choice to customers while helping to keep our fares low. You only pay for what you need – travelling with less means paying less, and you can always add more if you need.

Labor has announced it will drop the so-called “widow tax” in its next tranche of tax reforms after widespread pressure from the opposition and crossbench.

Under the reforms to negative gearing and the capital gains tax discount announced in the May budget, a widow or divorcee would have lost their tax concession – which Labor promised to fix under subsequent legislation.

It was revealed in June that, for example, if a property was owned by a couple, they would lose grandfathered exemptions to negative gearing and capital gains tax in the event of a divorce or death, and the property was transferred to one of the partners.

The treasurer has also exempted beneficiaries of “genuine testamentary trusts, deceased estates and special disability trusts” from the new minimum tax on capital gains.

The government will now consult on the latest changes.

Good morning, and happy Wednesday. Nick Visser here bright and early. Here is what’s on deck.

Jetstar will make it more difficult for travellers to bring carry-on baggage onboard an aircraft. The company will remove its 7kg carry-on weight limits, but impose a size-based model that will allow customers to bring just one underseat bag. An overhead bag will now cost.

The federal government said it will drop the so-called “widow tax” after widespread pressure from the opposition and crossbench. Under the reforms to negative gearing and the capital gains tax discount, a widow or divorcee would have lost their tax concession.

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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: theguardian.com