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Federal Budget 2013

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May 15, 2013
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Last night, Wayne Swan delivered his sixth federal budget outlining Australia’s financial future for the next 12 months.  What we have seen delivered not only looks at the next 12 months, but also a longer term plan (10 years).
 
This budget will no doubt have a positive and negative affect to families around the country.
 
So how does this affect you?
 
Some of the specifics that came out of the 2013/2014 Federal Budget are:
 
  • Baby Bonus is abolished.  This is a loss to families of $5,000 per child. (from March 2014), to receive the full $5,000 the baby must be born before 30 June 2013 and $3,000 if the baby is born before March 2014.
  • Increase to family tax benefit A of up to $2,000 (from July 2014)
  • Families that are not eligible for paid parental leave will receive $2,000 for the first child and an additional $1,000 for every subsequent child.  (from July 2014)
  • Increase to medicare levy of 0.5% to fund the national disability insurance scheme from July 2014.
  • Increase to superannuation guarantee from 9.25% to 9.5% from July 2014.
  • Implement a new tax to income earned from super income streams, tax of 15% on income greater than $100,000.
  • Parents will also be left out of pocket as the Government freezes the maximum rebate for childcare fees to $7500 for four more years, robbing working families of $717 that they might have received through indexation. 
  • Singles and wealthier families will have to spend over $2000 out of their own pocket on medical expenses from January 2015 (up from $1221.90) before they can claim back 80 per cent of their out of pocket costs over this amount.
 
Before the Federal Budget was announced, we were already informed of an increase to the medicare levy impacting households by approximately $600, this was to fund the national disability insurance scheme.  In addition, taxing the wealthy at 15% on earnings over $100,000  derived from their super account.
 
The Federal Budget is no different to a typical household budget (process).  It outlines what income and expenses the country is expected to incur over the next 12 months.  The main income source for the government comes in the form of taxes such as income tax and GST. 
 
Family Tax Benefit Part A is paid for each child. The amount you get is based on your family’s individual circumstances.
 
Some notes on the eligibility criteria for Family Tax Benefit A sourced from the human services website is as follows:
 
You may be eligible for Family Tax Benefit Part A if you care for a dependent child who is either:
 
  • under 16 years of age 
  • aged 16 or 17 years and has completed a Year 12 or equivalent qualification, or
  • aged 16–19 years (up to the end of the calendar year they turn 19) and:
          – is undertaking full-time education or training in an approved course leading to a Year 12 or equivalent qualification
          – has an acceptable study load, or
          – has been granted an exemption from this requirement
 
You also need to satisfy an income test (which is that household incomes must not be greater than $112,000), meet residency requirements and be caring for the child at least 35 per cent of the time.
 
For assistance creating and maintaining your household budget, contact Bills to Pay today on 1300 566 729 or www.billstopay.com.au.