Need a quick rundown on how your family will fare from last night’s Federal Budget? We have your guide right here. Read on to find out what you’ll get from the government – and what you’ll lose.
If you’re receiving Family Tax Benefit …
- The benefit rates will be frozen for two years.
- The maximum income rate ‘taper test’ is changing. Families will lose 30 cents of their Family Tax Benefit in every dollar they earn over $94,316 from July 2018.
- If you don’t meet the ‘no jab, no pay’ immunisation policy, your family tax payments will be reduced by about $30 per fortnight per child who doesn’t meet the rules.
If you’re a single parent …
- Single parents will be in the spotlight, with a crackdown on those fraudulently collecting multiple payments.
- Parents will have to find a witness to prove they are no longer in a relationship to access the single parent payment.
- The government will also chase down parents who are paid too much child support from an ex-partner.
If you use childcare …
- A more simple, means-tested Child Care Subsidy is replacing the Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance Programme.
- If your family earns $185,710 or less and needs to use more child care, you won’t face an annual rebate cap.
- If your family earns more than this, there will be a $10,000 annual cap.
- Families earning a combined $350,000 and over won’t be eligible for child care subsidies.
If your child is heading to pre-school …
- Families will still have free access to a guaranteed 15 hours per week of preschool, but this has only been secured for 2018.
You’ll be paying more tax …
- That’s the bad news. However, it will go towards funding the National Disability Insurance Scheme.
- The Medicare Levy will be hiked from two per cent to 2.5 per cent of your taxable income. So if you earn $50,000 you’ll pay $250 more in tax. However your family will be exempt if it earns less than $36,541.
- The Medicare rebate freeze will be lifted, meaning cheaper doctor’s visits.
What the opponents say …
- Labour, the Greens and some Senate crossbenchers have slammed it as an ‘unfair’ budget.
- They claim high-income earners will get a tax break while average Australians will be slugged with the increased Medicare levy.
For more information, take a look at the Federal Budget 2017 in detail.