Home Federal Budget The Federal Budget 2014: What Does It Mean For Your Family?

The Federal Budget 2014: What Does It Mean For Your Family?

written by Shelley Marsh 16/05/2014
Federal Budget 2014

Ok if the 2014 Federal Budget was all a bunch of gobbledy gook to you then do not worry you are certainly not the only one!!!!  Here is my take on what you really need to know about what was announced in the Budget and how it will impact you and your family!

  • If you get the Family Tax Benefit part B the rules have changed.  Only Families on a income of less $100,000 with children under six qualify.  Though existing recipients of Part B with children six or older will continue to receive payments for two years.
  • Planning to have a baby?  The new paid maternity scheme to start in July 2015 will have scheme payments capped at a payment of $50,000, as opposed the originally promised $75,000.
  • Going to the Doctor will cost you more:  Anyone who sees a doctor and gets bulk billed will pay $7 every time they go.  Non-bulk-billed patients will pay an extra $5 per visit.  Children under the age of 16 and concession card holders will have the payment capped at 10 visits.
  • You will pay more for medicines:  Medication covered under the Pharmaceutical Benefits Scheme (PBS) will increase by $5 and PBS safety net thresholds will kick in only after increased out-of-pocket expenses.  Concession card holders will pay 80c more for PBS medicine, and spend an extra $61.80 before the safety net kicks in.
  • Petrol Prices will rise:  The government will raise the petrol tax (fuel excise) twice per year in line with inflation.
  • Compulsory employer super contributions to pause at 9.5% for three years.  They are currently at 9.25%, so will go up once more in July 2014.  The previous plan was to increase them to 12% by 2019.
  • Pension age has increased to 70 for anyone currently under 50.
  • First Home Saver Accounts (FHSA) have been axed.  No more new accounts can be opened and as of July 1 the government will end its 17 per cent co-contribution.  In July 2015 the tax and social security concessions associated with the scheme will be withdrawn and the restrictions on withdrawals will be removed.
  • If you work for the public service, there are plans to cut 16,500 public service jobs.
  • Those earning over $180,000 will pay an extra 2% per annum tax for the next three years, this is the “Budget Repair Levy”.
  • For those with kids at university or thinking of going:  Our children will have more debt and start paying it back sooner.  Universities will have the ability to set their own fees, so prices will most likely rise. Scholarships will be available to disadvantaged students.  From July 2016, students will have to pay their loans back sooner, starting once they earn over $50,638 a year.
  • For the unemployed:  Those aged under 25 will need to “earn or learn”. People under 30 will need to wait six months to be eligible for Newstart and once on payments will be subject to a work for the dole scheme.

So there it is and it was a tough one!!!!  Of course there was lots more bits and pieces, but these are the essentials that I think could have the greatest impact on your family.

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Disclaimer:

The information contained in this post is general in nature and does not constitute financial advice.  Please see your financial advisor for advice specific to your individual circumstances.

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15 comments

Alison Parks 16/05/2014 at 11:04 am

Great summary – thanks Money Mummy x

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Jody at Six Little Hearts 16/05/2014 at 11:21 am

Great run-down! Terrible budget!
I thought they were yet to put School Kids Bonus through Parliament? I was counting on receiving just one more payment and I thought its abolition was contested under the Opposition? I am hoping I am correct. The budget has so many sore points I was under the impression they just wouldn’t get to it yet thanks to all the bickering!
I am hoping this Government will be overthrown! Fingers crossed common sense prevails.

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Shelley Marsh 16/05/2014 at 4:40 pm

Hi Jody – no I think you are right – I did a double check and couldn’t see where it has been passed by parliament. So hopefully you will get another one in July. I guess we will have to keep our eye out on the Human Services website to be sure. xox Shell

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Bec @ The Plumbette 16/05/2014 at 12:30 pm

Thanks for the summary Shelley. I have mixed feelings about the budget. Let’s hope that all the families that are disadvantaged will be able to find suitable employment to get more income.

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Shelley Marsh 16/05/2014 at 4:41 pm

Hi Bec, yes I have mixed feelings too. It is a tough one for a lot of people. xox

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Eva @ The Multitasking Mummy 16/05/2014 at 1:52 pm

Thanks for this summary, it’s been a little hard to understand with various information here and there. I can understand why they are doing this as the last government left loads and loads of debt but that doesn’t mean I totally agree with aspects of the budget, I think it’s hitting the wrong people. But in the end, there’s not much we can do but soldier on. I agree with getting rid of some of the public service jobs although I’m sure there will be strikes, I think they should also consider how much they pay government staff to have maternity leave too, I think it’s a bit ridiculous and as a woman who didn’t receive any maternity pay from an employer, if you chose to have a baby, you need to save for it! Just my thoughts…everyone is different. 🙂

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emma 16/05/2014 at 5:34 pm

What a great rundown. Can i please clarify – if you have put money in the first home saver account, you will get your contribution this year and next year and then as of July 2015 you can just withdraw it as cash?? Or does it have to still be paid into super if not used on a deposit.

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Shelley Marsh 20/05/2014 at 8:07 pm

Hi Emma, my understanding is that you will get one more 17 per cent bonus interest payment from July 1 this year — calculated on what you’ve contributed within the last 12 months, up to a maximum of $6000. Then for the next 12 months the only way you can access the money in your FHSA is by adhering to the existing rules, that is putting it towards your first home. During this time your money will only be taxed at 15% on earnings and that continues until July 1, 2015. After that your FHSA will revert to a normal savings account and you can access it for whatever you want. Like I said this is my understanding… it pays to check with your provider to be sure…..

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ann 18/05/2014 at 8:02 am

Great explanation, I have had my head in the sand regarding this issue.

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Mums Take Five 18/05/2014 at 9:06 am

Sheeesh it all gets a little harder huh. Thanks for the report and clear explanations on it al. x
thank you for linking up for Sunday Brunch again, good to see you x

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Shelley Marsh 18/05/2014 at 7:42 pm

No worries Bel – I wouldn’t miss my Sunday Brunch link up with you!

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Malinda @mybrownpaperpackages 18/05/2014 at 11:48 am

A very succinct run down, thanks.

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Shelley Marsh 18/05/2014 at 7:42 pm

Glad you liked it Malinda!

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Ellen 23/05/2014 at 8:33 pm

Brilliant, concise run-down of a complex situation – thanks MM!

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Shelley Marsh 25/05/2014 at 9:40 am

Thanks Ellen!

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