The Federal Government has been out in force today spruiking its 2016 Budget, but while there’s lots of talk about what it means for small businesses and for the nation’s debt levels, there’s hasn’t been a lot of chatter about what the Budget delivers for families. Babyology is here to help with a guide to what families really need to know about the 2016 Budget.
Treasurer Scott Morrison’s Budget promises some tax cuts to workers earning over $80,000, leaving a little more money for family spending, but there will be some changes to childcare subsidies and Family Tax Benefits too.
And tax incentives on contributions to the superannuation funds of low-income earners is expected to help stay-at-home mums and those working part-time.
Here’s what else you need to know:
- The Jobs for Families childcare package announced in last year’s budget will continue with $40 billion to be invested in childcare support over the next four years aimed at simplifying access to financial help.
- But the promised Child Care Subsidy, focused on encouraging stay-at-home mums back to work, has been pushed back to July 2018. News.com.au reports this hold up is because the Senate has not yet passed changes to the Family Tax Benefit.
- The nanny pilot program will be extended until June 30, 2018 to continue helping those families who struggle to access mainstream childcare, such as shift workers.
Paid parental leave
- Cuts to prevent “double dipping” by getting employer paid parental leave as well as government funds remain in the plan.
- Women who take time off work to have children are being encouraged to build on their super savings with a Low Income Superannuation Tax Offset, giving Australians with incomes up to $37,000 a refund of up to $500 in their super account of the amount of tax paid on their super contributions.
Tax cuts and incentives
- The middle income tax bracket has been increased from $80,000 to $87,000, meaning those under the new threshold will remain on 32.5 per cent tax rate instead of 37 per cent.
- There are also promised tax incentives encouraging husbands or partners to contribute to their low-income spouse’s superannuation fund.
- Parents of young job seekers might be relieved by the governments promise to transform the work for the dole model to help those aged under 25 find meaningful work.
- The Age reports a new $840m package for young jobseekers, which includes the set-up of a Youth Jobs PaTH (Prepare-Trial-Hire) program allowing businesses to provide risk-free internships before committing to hire.
- A total of $2.9 million will be invested in public hospitals over the next three years.
- The government has also allocated $1.7 billion to fund a dental scheme for children and low-income earning adults.
- From 2018 and 2020 the government has committed $1.2 billion to government and non-government schools – however it falls well short of Labor’s Gonski recommendations as reported by The Sydney Morning Herald.
With the Federal election tipped to be on June 2, the Liberal Government will need to provide the full budget, including the “not yet announced” $1.6 billion of additional spending, within 10 days of calling locking in the date, the ABC reports.
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