Jump to content

How the budget could affect you


  • Please log in to reply
5 replies to this topic

#1 smtm

Posted 13 May 2009 - 01:05 AM

How does the May 2009 budget affect you? Let's take a look at some of the measures introduced in the federal budget that could impact your family's finances.

No surprise paid parental leave has finally made the budget YAH. A little disappointing given these tough economic times it couldn't be introduced earlier. However if you are looking at going on maternity leave as of January 2011 you will be entitled to a share of the $731 million set aside for paid maternity leave, to be paid over five years.

The parental leave payments which will be equivalent to the minimum wage, currently $544 a week, will be paid to stay-at-home parents for 18 weeks after the birth of a child. To qualify for the payment you need to have earned an income of less than $150,000 in the previous financial year, 2009/10. You will need to have been in paid work for at least 10 of the 13 months prior to the birth of a child, for at least 330 hours, or approximately a day a week.

Good news for first home-buyers, who have another six months to locate their dream home and still benefit from last year's boost to the first home owners grant. However it will be gradually phased out, first home buyers will be entitled to the full amount for the first three months of the new financial year ($7000 for existing homes and $14,000 for new homes). Beginning October 09, the amount will be halved for a further three months, taking the total payment to $10,500 ($7,000 original grant plus bonus $3,500) for buyers of existing homes and $14,000 for new homes before the boost comes to a complete end at the close of December 09.

Those with private health care insurance will take a hit. From the 1st July 2010, the 30 per cent private health insurance rebate will be reduced for families with an income greater than $150,000 and completely cut out for families who earn more than $240,000. The reduction of the health insurance rebate is set to increase the cost of private health insurance for many everyday Australians. This initiative will see the introduction of a "tiered" system.

Tier One
At the lower threshold, the rebate will be 20 per cent for families earning between $150,000 and $180,000. Those penalised for not having private health insurance good news, the Medicare levy surcharge will remain at 1 per cent of income.

Tier Two
Families earning between $180,000 and $240,000 will be entitled to a rebate of 10 per cent. The Medicare levy surcharge will be 1.25 per cent of income for that group.

Tier Three
Families earning more than $240,000, you will not be entitled to any private health rebate. And if you refuse to take out private health care insurance, look out, the surcharge is set to rise from 1% to 1.5 per cent.


Note these new arrangements, will not affect singles earning less than $74,000 a year and couples on less than $150,000 a year.

Cuts to superannuation tax concessions in the budget will impact lower income earners. For some time now the government has encouraged taxpayers, particularly low-income earners to personal contribute to their super funds by matching personal superannuation contributions 1 to 1.5. Taxpayers would be entitled to a maximum financial benefit of $1,500. This is an enormous financial benefit for low-income earners, trying to build up their super nest eggs, especially the mums who are forced to opt out of compulsory superannuation contributions, whilst out of the work force. Sadly this financial benefit is set to change, matching contributions will be reduced to dollar-for-dollar, maximum benefit of $1,000. By way of example, a worker who earns less than $30,342 who would ordinarily contribute $1,000 from their after-tax income will see their co-contribution cut from a maximum $1,500 this year to $1,000 for the next three years. The co-contribution is means tested, and the maximum payment is reduced for each dollar you earn between $30,342 - $60,342, your entitled cuts out once your income exceeds $60,342. This is just one of the changes proposed for superannuation, designed to save $4.2 billion over four years.

Because of a change to the indexation rate applying to FTB-A, as of July this year, low income families earning less than $42,000 a year will lose 35 cents per week equivalent to $18 a year for each child aged under 12, and $26 a year for each child aged 13-15-years-old. Families earning more than $112,000 a year will lose on average $16 a week per child - $832 a year. Families with a stay-at-home parent claiming family tax benefit B and families claiming the baby bonus will also be hit, with an income test placed on both payments at $150,000.

Sadly those in need of IVF services will take a hit in the May 2009 budget. A shake-up of the Medicare Safety Net (MSN) will result in the public subsidisation of specialist services, including IVF and obstetrics, capped for patients who qualify under the scheme. As of January next year, when a patient reaches the safety net threshold of $1,111.60 in out-of-pocket medical fees, or $555.70 for those on low incomes, safety net payments will be capped at:

- $200 for the planning and management of a pregnancy, including being booked into a hospital for delivery
- $30 for a pregnancy consultation, including blood, urine and weight checks
- $550 for the planning and management of an IVF pregnancy

Sadly these changes to the MSN could very well be the difference between whether couples struggling to have a family naturally, could afford to have a family or not. On the other side of the argument the changes to MSN mean nurse practitioners, and midwives will have access to the Pharmaceutical Benefits Scheme and Medicare Benefits Schedule, this means they will be able to offer taxpayer subsidised diagnostic tests and prescription medicines. This is all very well and fine for those who can get pregnant or after the changes to public subsidisation of specialist services, can afford to get pregnant. It doesn‚€™t help those who can‚€™t afford IVF services to actually get pregnant!

What a tough year we have ahead!

Well I think that about caps it off, given this post is quite late, I apologise in advance for any typos‚€¶. I was eager to report back on the changes that could impact your family.

Sonia Williams a mother of two, qualified accountant, author, author of several books, and founder of Show Mummy the Money www.showmummythemoney.com.au, where you can learn how to, save, make and protect your money. This information is correct at time of writing. It is general advice only and has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

#2 dawnclarke

Posted 15 May 2009 - 11:12 AM

hi sonia, thx for this great summary, little miss of 3 mths is not feeling well and I have not had time to wake up go thru the details...

regards dawn

#3 strawberryblonde76

Posted 18 May 2009 - 03:16 PM

Hi Sonia,

Thanks for this info, very comprehensive! Are you able to clarify how the safety net changes will affect those who choose a private hospital and obstetrician? Obviosuly hospital comes udner private health cover, but the ob doesn't. So say if an obstetrician charges $5000, what would you be able to claim from Medicare under this new system? Only $200?

Thanks

Strawberryblonde76

#4 Wishing2011

Posted 12 August 2009 - 09:33 AM

QUOTE
Hi Sonia,

Thanks for this info, very comprehensive! Are you able to clarify how the safety net changes will affect those who choose a private hospital and obstetrician? Obviosuly hospital comes udner private health cover, but the ob doesn't. So say if an obstetrician charges $5000, what would you be able to claim from Medicare under this new system? Only $200?

Thanks

Strawberryblonde76


I'm interested in the answer to this too!

#5 justinajoseph

Posted 01 September 2012 - 05:32 AM

Hi! Thanks for info! original.gif

#6 AbellaIvan

Posted 08 January 2013 - 07:00 PM

Very good information. 2009 budget has affected many people. And i agree with sonia's answer.




2 user(s) are reading this topic

0 members, 2 guests, 0 anonymous users

 

5 workplace lessons for new parents

Take heart in these principles that will transfer seamlessly from the workplace into your new life as a parent.

Review: The Volvo 2015 XC90 SUV has all the safety features your family needs

The new Volvo XC90 SUV's focus on keeping you safe does not come at the expense of comfort in the XC90.

Kim Kardashian reveals she may have hysterectomy

Kim Kardashian has revealed complications during pregnancy means she might have to have a hysterectomy after the birth of her second child.

Why late night snacks wreak havoc on weight loss

 Loath as you may be to admit it, chances are that at some point you have found yourself in the kitchen late at night, devouring food.

Toddler twins pretend to be asleep to fool mum

They say twins have a unique connection. If this cute clip is anything to go by, these toddler sisters like to use their special bond to try to fool their mother.

Dads who do their share have more sex: study

For women trying to encourage their partners to take more interest in fatherhood, it could be the ultimate incentive.

Think you might have IBS, coeliac disease or Crohn's? Here's what you need to know

Conditions affecting the gastrointestinal tract are common in modern humans, and many are on the rise - including irritable bowel syndrome (IBS), inflammatory bowel disease (IBD) and coeliac disease.

Couple poses for newborn shoot with adorable puppy

Tired of being asked about their baby-making plans, Australian couple Matt and Abby decided to give a creative answer.

Win a Mountain Buggy Swift

To celebrate Essential Baby reaching half a million Facebook fans, we have a Mountain Buggy Swift to giveaway to a lucky fan.

When your toddler disagrees

There comes a time when your child starts having different views to you. I didn't realise that time would come so soon.

The exercises you know you should be doing (but probably aren't)

I bet your to-do list today is long. But somewhere on that massive list, are you making time for your pelvic floor?

How did we have babies before apps came along?

Three months ago, my wife, Chrysta, and I were driving along Melrose Avenue in Los Angeles when she let out a harrowing cry.

This baby really loves the family cat

Some babies get excited when mum or dad come to get them from their cot after a nap.

Woman gives birth after having her own mother's uterus transplanted

In a world first, a healthy baby has been born from the same womb that nurtured his own mother.

Home brand foods contain less salt than pricier rivals

Supermarket home brand foods, long derided as cheap and inferior, contain far lower levels of salt than pricier, branded rivals, new research shows.

Early exposure to peanuts recommended for allergy prevention

A paediatricians' group is recommending that infants at high risk of peanut allergies be given foods containing peanuts before they turn one.

Nannies for hire, wherever you're flying

Ever dreaded the prospect of a long flight, dreaming about how wonderful it would be for a nanny to entertain the kids?

Is it okay to name your baby with a sense of humour?

My husband was sure that Danger was a good option for a boy. And as the pregnancy progressed, it actually started to sound really good.

So hot right now: double-barrelled baby names on the rise

It's one way to make your baby stand out from the pack – giving them not one, but two first names.

Second time around: is it really better the devil you know?

When I fell pregnant with my second child I was, naturally, very excited. Then it all started to come back to me - and I freaked.

Shopping with kids: breaking the pester-power cycle

You're out shopping with your little one and they're incessantly whining that they want a treat. It's easy to say no ... the first time, at least.

Get your FREE Baby & Toddler Show ticket!

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

The worst 20 minutes of my life

Thirty seconds was all it took to turn a shopping trip into my worst nightmare.

Top baby names for England and Wales in 2014

George has overtaken William in the official rankings of most popular British baby names - and Game of Thrones is still having an impact on parents.

Baseball or baby? Dad's tough choice

What's more important, a baby or a baseball? That's a question this dad seems to struggle with.

Childbirth choices: five star or free?

It's not often you hear the words labour and luxury in the same sentence but for some, a 5-star start to parenthood is exactly what they seek. And with a number of private hospitals now offering packages which include a post-birth stay at a sumptuous first class resort, many mums are choosing to recover in style.

'Where did your boobies go, Mummy?' and other soul-destroying comments from kids

Most women carry a smidge of baby weight after giving birth. If you're lucky enough to have an older child in the house, they can keep you on track with your weight loss goals.

Do you read me, baby?

Is it too soon to be reading to my two-month-old son? If not, what should I read?

Minimising sibling rivalry when you've got a baby

Sibling rivalry is an act of competition, but if your children feel involved and special, this type of jealousy will be minimised.

Will studying on maternity leave take you away from your most important job?

I remember when I was trying to decide if I could combine motherhood and furthering my university education.

Win a Pacapod this Father's Day

To celebrate dads and families, we are giving away a Picos Pack from Pacapod Australia filled with a few extra goodies ENTER NOW

Preschooler hit by car shortly after baby brother's death

A mother has had a frantic race to the hospital after her daughter was hit by a car, just four weeks after her infant son died.

Gay couple and Thai surrogate in custody tug-of-war

A six-month-old baby girl is trapped in the Thai capital in a bitter custody wrangle between her Thai surrogate mother and her biological father.

Couple denied IVF over parenting concerns

A mother of six has been denied access to IVF treatment in order to have another child over concerns about her parenting skills.

The book that promises to put your children to sleep

Exhausted parents from around the world are singing the praises of a "miracle" book which promises to put even the most restless child to sleep in just minutes.

5 things every parent who feels guilty needs to know

Parenthood can make you feel bad, but you're not alone.

Royals criticise 'dangerous' attempts to photograph Prince George

The British royal family criticized paparazzi on Friday for what it called their increasingly dangerous attempts to photograph young Prince George.

'No jab, no play' rule to cover Victorian kindergartens and childcare centres

"Anti-vaxxers" face not being able to send their children to childcare centres or kindergarten if they refuse to have them immunised.

15,000 birthing kits on their way to developing countries

Giving birth in a hospital surrounded by medical experts is tough enough, but some women deliver babies without a clean sheet to lie on.

Photo of premmie 'too graphic', fundraising site says

When their son Jacob was born at just 27 weeks, Christina and Jeff Hinks were thrown into an uncertain world.

The latest Bugaboo collections: cool chevron and runner prams

Bugaboo sure likes to keep things fresh, and with the Australian spring/summer season coming up, there are two new Bugaboo pram releases.

Making room for two in the bed

Mum's room or their own room? Cot or bassinets? Deciding where twins will sleep can be tricky.

 

FREE TICKET

See Hi-5 LIVE in Sydney!

Get your free ticket to The Essential Baby & Toddler Show and save $20 - register online now!

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.