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 In July 2015 the tax and social security concessions associated with the scheme will be withdrawn and the restrictions on withdrawals will be removed.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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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.