THE ‘parliamentary gridlock’ has not stopped Treasurer Wayne Swan sharing the benefits of the mining boom, with families and low income earners set to gain the most.
WA’s mining boom will help fund the Federal Government’s $5billion bonuses package, with the axing of the promised company tax cuts to instead redirect money to families, welfare recipients and the unemployed.
In his fifth Budget, Mr Swan unveiled a record $46billion turnaround, and if achieved, it would make 2012-13 the first time since 1989-90 a Labor government has been in surplus.
With families in mind, Mr Swan announced those currently qualifying for the Family Tax Benefit Part A will receive up to $600 a year from July 1, 2013. An allowance of $210 a year for singles and $350 for couples will be paid in two instalments from March, 2013 while a new Schoolkids Bonus will be implemented.
The Schoolkids Bonus replaces the Education Tax Refund with $410 to be paid for each primary aged child and $820 for those in high school.
These bonus payments are set to be handed out from next month which is a positive for a number of families struggling under the rising cost of living.
On top of parental payments, the Budget has promised $1billion over four years to the 400,000 Australians living with a significant and permanent disability through the National Disability Insurance Scheme and $515million on reducing public dental waiting lists. But with the announcement of multi-billion dollar spending comes cuts, with the defence sector hit hard.
Mr Swan has announced the biggest cut to defence spending in decades, with $5billion over four years to fund the new family promises.
It is reported these cuts will cost 1000 jobs and force the deferral of several key projects.
On top of defence cuts, payment cuts have been pledged by Mr Swan if families on welfare or welfare payments go overseas for more than six weeks.
Prior to Tuesday night’s Budget announcement, the cut-off for welfare payments was 13 weeks. The changes affect disabled pensioners, carers, widow pensioners, parenting payment recipients and Youth Allowance recipients. Those receiving Family Tax Benefit A payments will have their payment reduced to the base rate should they exceed the six week period.
The $46billion Budget turnaround is an effort to get the Federal funds back in surplus by 2013, with disenchanted voters the key movers in the announcement.
Single, employed, no children
With the tax-free threshold tripling from $6000 to $18,200, it means those earning $50,000 a year will get an extra $2053 for 2012-13. Low-income earners will get a boost of $500 to their superannuation savings and a yearly allowance of $210 for recipients of Youth Allowance, Newstart Allowance or the Parenting Payment.
Couple, employed, children
The new Schoolkid Bonus replaces the Education Tax Refund with parents to receive an $820 per high school child and $410 per primary school child payment.
From July 1, 2013 those eligible for the Family Tax Benefit A scheme will receive an extra $300 a year for families with one child or an extra $600 for those with two or more children.
Those families who travel overseas for more than six weeks will have their Family Tax Benefit A reduced to the base payment.
A yearly allowance of $350 per couple will be paid for the recipients of Youth Allowance, Newstart Allowance or the Parenting Payment.
$225.1million will be spent over four years to help with the rising cost of child care.
Single, unemployed, children
Single unemployed parents will be hit hardest by the Budget announcement with the current $648.50 per fortnight payment which runs until the child turns 16 to be cut once the child turns eight. The changes will force a shift to the Newstart Allowance.
A yearly allowance of $210 will be paid to the recipients of Youth Allowance, Newstart Allowance or the Parenting Payment.
Welfare payments will also be stripped should the family go overseas for more than six weeks.
Couple, unemployed, children
Partnered unemployed parents also lose on the new announcement, with the current $442 fortnightly payment to be cut when the youngest child turns six.
A yearly allowance of $350 per couple will be paid for the recipients of Youth Allowance, Newstart Allowance or the Parenting Payment.
Welfare payments will also be stripped should the family go overseas for more than six weeks.
Retirees
To help offset the carbon tax, annual increases of $338 for singles and $255 each for couples will be paid.
Age pensioners who have worked in Austrealia for at least 35years will get the full pension if they opt to retire or travel overseas.
