It is important to build for a stronger future for Australia and I understand that governments must make tough decisions. It remains to be seen how this will play out across our economy and community.
I’ll be honest, I think many of our clients will be hit hard by this budget.
Some quick points:
- Family Tax Benefit will be frozen for 2 years
- Part B will cut out with the higher income earner earning $100,000 and when the youngest child turns 6
- The FTB supplements will be cut by $100
- The seniors health care card income test will include non taxable superannuation
- The seniors supplement has been axed
- Prescription drug costs will increase by $5
- There will be co contributions for bulk billed medical services of up to $7
- Fuel excise will be reintroduced
- Those earning over $180,000 will pay a 2% budget repair levy to reduce the deficit
- University fees will increase and HELP will start to be repaid at a lower income level
Those under 30 will have to earn or learn – under 25 will only be able to access youth allowance, under 30 there will be a 6 month wait for Newstart and then they will have to work for the dole.
On the upside:
- Trade apprentices will be able to obtain a low interest loan of up to $20,000 over 4 years
- Company tax will reduce by 1.5% from 1 July 2015 The carbon and mining resource rent tax will be abolished – hopefully reducing power costs for households and business
- There is going to be an increase in investment by the government
So my thoughts. I think for the majority of households, who seem to be struggling now, are going to find it tough. This has hit middle income families hard, coping the majority of the pain. The budget repair levy, which is aimed at high income earners will bring in approximately $3 billion. The cuts to Family Tax Benefit and changes to Newstart availability will save approximately $8 billion. Also with the increase in health and education costs families will carry a large amount of the burden of returning the budget to surplus.
It is important to build for a stronger future for Australia and I understand that governments must make tough decisions. It remains to be seen how this will play out across our economy and community.
