Jetstar to introduce fees for overhead luggage; Australian government scraps 'widow tax'

Jetstar changes carry-on policy

Australian low-cost carrier Jetstar has announced changes to its carry-on baggage rules. Starting in February 2027, the airline will no longer apply a 7kg weight limit for cabin bags. Instead, passengers will be allowed to bring one small bag that fits under the seat, such as a backpack or handbag. Anyone wishing to use the overhead lockers will need to purchase "priority carry-on", which adds a second, larger bag and earlier boarding. The fee starts at A$25 one-way for short flights and can exceed A$52 on long-haul routes. The airline's CEO said the move was a response to passengers and crew struggling to access overhead bins. He argued the new model gives customers more choice, helps keep fares low, and simplifies boarding.

Government removes 'widow tax'

The Australian Labor government has decided to abandon the so-called "widow tax" in its next round of tax reforms, following pressure from the opposition and crossbench. The measure was part of changes to negative gearing and the capital gains tax discount announced in the May budget. Under those rules, a widow or divorcee could lose a tax concession if property was transferred after a partner's death or divorce. 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 says it will now consult on the updated changes.

Housing affordability comments

Independent senator David Pocock said a housing correction "would be a good thing for our country", arguing that house prices cannot continue rising at the pace seen over the past two decades. Speaking on ABC News Breakfast, he questioned what housing is for and said prices must be kept in check while wages catch up, so housing can become affordable again. Pocock also welcomed the government's decision to drop the "widow tax".