The Budget. What does it mean for you and your family?
What does the budget mean for you?
The many ‘leaks’ that have been coming thick and fast about the Budget the past few weeks are the usual strategy by whichever Government is in power to soften the blow of announcements on Budget night. So this one wasn’t full of many unexpected surprises. That said, it will have an impact on most, if not all of us.
So what are the main pointers in terms of families?
• Paid paternity leave has been postponed from July 2012 to January 2013.
• The plan is to freeze the indexation of Family Tax Benefits, meaning for the next three years they will be fixed at 2010 levels of $726 a child for FTB A and $354 for FTB B. T
• The thresholds will be frozen at at $150,000 a year for Family Tax Benefit B.
• For the Baby Bonus, the limit will remain unindexed at $75,000 family income for the six months after the birth or adoption of a child. Paid Parental Leave will see the income limit frozen at $150,000 for the primary carer.
• If you are receiving the low-income tax offset of $300 this will be paid during the year instead as a lump sum.
• A condition of those receiving income tax benefits is that children must have a health assessment before they start school
• New work tests and definitions for incapacity are to be introduced to get more people off Disability Support Pension and into the workforce. This will affect young parents, long-term unemployed and disability support pensioners who will have to meet strict work and training requirements or risk having their payments cut under the proposed changes planned in the budget.
• There are planned tax cuts of up to $3900 a year for single parents in part-time work.
• $200 million will be funneled into schools to support students with disabilities.
• The Dependent spouse tax offset to be phased out, beginning with those under 40 with no children. This handout dated back to 1936
• The Family Tax Benefit Part A for teenagers will be increased by up to $4208 a year, with more flexible access arrangements. This is for households with 16- to 19-year-olds
These are just some of the proposed measures. What are your thoughts on the Budget?