Australia's Jetstar airline has announced new rules for carry-on baggage starting February 2027. Passengers will no longer be able to bring a 7kg carry-on bag for free; instead, they will be allowed one underseat bag such as a backpack or handbag. Those wishing to use overhead lockers will need to purchase "priority carry-on", which includes a second, larger bag and early boarding. Fees start at $25 one-way on short flights and can exceed $52 on long-haul routes.
Jetstar's CEO said the decision came amid frustration from passengers and crew struggling to access overhead bins. He stated: "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."
Additionally, Australia's Labor Party has announced it will drop the so-called "widow tax" after pressure from the opposition and crossbench. This tax was introduced in the May budget as part of reforms to negative gearing and the capital gains tax discount. Under the reforms, a widow or divorcee would lose their tax concession if property was transferred to one partner after death or divorce. The issue was revealed in June.
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.