Can you find your family in this list of examples of who’ll be affected by the Federal Budget?
Last night’s Budget was the most-hyped of recent memory. But in the fall-out, what does it really mean for your family finances? We put together three common family examples and look at what they’ll lose and gain (hint: there’s not a lot of gaining).
If you are a single parent with a child aged six, working part-time (with an income around $24,960) and studying, you will:
- Lose your Family Tax Benefit B, because your child is now 6.
- Have your Family Tax Benefit A cut down to $600 instead of the current $726 next year.
- You will now pay $7 every time you or your 6 year old needs to see a doctor (and $7 each time either of you need an xray or blood test and $5 for prescription medication).
- You will also pay 1c more in petrol per litre for all those school run trips.
- Your uni fees are about to increase with the government releasing the cap on courses (universities will now set their own fees), you will need to pay your HELP loan sooner – when you earn $50,000 – and the interest rate on your loan will jump from 2.9% to 6% regardless of when you started studying.
If you are a stay at home mum with a working partner (who earns around $80,000 per year) and two little kids, you will:
- Lose your Family Tax Benefit B on your kids' 6th birthday.
- Have your Family Tax Benefit A cut down to $600 instead of the current $726 next year.
- You will still have access to the current Childcare Benefit, capped at $7,500 or the Childcare Rebate but it won't increase if childcare expenses increase.
- As long as your partner doesn’t get a pay increase (it would be a big jump to $180,000 per year) you won’t need to pay the 2% deficit levy tax increase.
- You will now pay $7 every time you or anyone in your family needs to see a doctor (and $7 each time anyone needs an xray or blood test and $5 for prescription medication).
- You get to add 1c per litre of petrol to your home expenses.
If you and your partner both work full-time (and have a combined income of $140,000) and a 4-year-old child, with plans to get pregnant next year, you will:
- Still have access to the current Childcare Benefit, capped at $7,500, or the Childcare Rebate but it won't increase if childcare expenses increase.
- As long as neither of you get a pay increase (to a household income of over $180,000 per year) you won’t need to pay the 2% deficit levy tax increase.
- You will now pay $7 every time you or anyone in your family needs to see a doctor (and $7 each time anyone needs an x-Ray or blood test and $5 for prescription medication). That includes when you decide to fall pregnant.
- You get to add 1c per litre of petrol to your home expenses.
- And when you decide to take maternity leave, you will get $50,000 - not the original election promise of $75,000
Here's our quick guide to last night's Budget changes for families:
PAID PARENTAL LEAVE
One of PM Tony Abbott's flagship election promises, the Government is sticking with the Paid Parental Leave scheme, but will "regretfully" lower the threshold for PPL eligibility from $150,000 annual wage to $100,000, and cut the maximum payment from $75,000 to $50,000.
CHILD CARE REBATE
The current Childcare Benefit, or capped $7,500 Childcare Rebate, is currently available to all parents. It remains, but the payment will be frozen for two years.
If you received Tax Benefit A and have kids at school, you used to be eligible for the Schoolkids bonus, but the Government committed to scrapping that back in April.
TAX BENEFIT B
This benefit is paid to families on a single income. It will be tightened to cut out when a parent earns more than $100,000. And it will cut out all together when a child turns six years old.
MEDICARE
All doctors' visits will be subject to a co-payment of $7.00. This includes visits for X-rays and pathology, and there will be some concessions, including for children and pensioners, who will only have to pay for their first 10 visits.
Here is what our readers said about the budget last night:
How has the budget affected your family?
