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The Impact of the 2013 Federal Budget on Australian Families

Treasurer Wayne Swan delivered the 2013 Federal Budget on 14th May, declaring a deficit of $19.4 billion for this current financial year. So, what does this mean for Australian families? The Budget offers improved funding for schools; people with disabilities and entrepreneurs are receiving more financial support; smokers are getting taxed more; and pensioners stand to benefit from selling their houses. Let’s have a look at how some of the specific figures will impact your family:
  • From 1st March 2014, the Baby Bonus is being scrapped and replaced by an increase to the Family Tax Benefit Part A – that’s $2,000 for the first child and $1,000 for each one thereafter. It’ll be paid as a first instalment of $500, with the rest rolled into regular fortnightly payments over a three-month period. This change — because payment has a tighter means test — will mean 28,000 families who would’ve received it in 2014-15 now miss out.
  • Up to $300 million over two years allocated to childcare reforms to help day care centres attract and retain qualified professionals. Another $12.9 million over three years will be provided to trial flexible child care arrangements for families who require care outside standard operating hours. The annual Child Care Rebate will remain at $7,500 a year until June 30 2017, instead of rising as previously planned.
  • School reforms mean more funding, so from 1st January 2014 schools will be funded per student: primary schools will get $9,271 per child and high schools $12,193 per child. Students with a disability; low socioeconomic status; non-English speaking or Indigenous background; or attending a remote school will benefit from additional funding on top of the base amount.
  • For working adults, including parents, from 1st July 2013 mandatory Super Contributions increase 0.25% to 9.25%.
  • The Medicare Levy is increasing from 1.5% to 2.0% from the 1st July 2014. For example, if your taxable income is $80,000 for the year, you’ll pay an extra $400.
  • The 30% Private Health Insurance Rebate is applicable only to those with a taxable income less than $84,000.
To read more about what the 2013 Federal Budget means for you and your family, visit http://www.humanservices.gov.au/customer/news/what-the-2013-14-budget-means-for-your-family

Posted 11 years ago 2 Minute(s) to read