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

 

Tot meets his heroes, falls apart with excitement

Two-year-old Quincy finished his potty training last week, and as part of his reward he was able to meet his idols.

Beautiful in our eyes: Georgia's story

I will never deny the fact that grief has a place when you give birth to a child who brings a set of circumstances very different to what you imagined. Because for nine months, I thought I knew my Georgie.

'It's been phenomenal': widower dad of quads thankful for support

There was nothing Erica and Carlos wanted more than a baby.

Vin Diesel names daughter after actor Paul Walker

The actor said there was "no other person" he was thinking about when he chose the name.

How midwives can help women who experience domestic violence

More than half of women who live with abusive partners experience violence during pregnancy.

Mum describes giving birth during Cyclone Pam

A new mother was told she must flee Port Vila hospital with her baby as Cyclone Pam bore down.

6 signs you're done having babies

There were a few signs I'm never going back to the land of maternity jeans, breast pumps and bassinets.

Marta Dusseldorp reveals breastfeeding cost her an acting job

Australian actress Marta Dusseldorp has revealed she was forced to withdraw from a Sydney Theatre Company production because a director did not approve of her breast feeding.

Female celebs (or their babies) with traditionally male names

Looking for a name that's a little bit different for a girl? Turn to names that have been traditionally used for males, as these celebs (or their parents) did.

'If you're anti-immunisation ... take a look at this picture of my son'

Greg Hughes is "an absolute shell of a man" as he and his wife Catherine struggle to come to terms with the loss of their newborn son Riley to whooping cough.

How an extrovert can raise an introvert

Introverts are often misunderstood as shy, and sometimes even rude. A timid child can be difficult to build rapport with, but it's important we nurture their sensitive natures.

Sheryl Sandberg's advice

'Choreplay': Help out at home to get more sex, Sandberg tells men

Forget foreplay. The new and improved route to intercourse is "choreplay" - it's good for your spouse, good for your house, and comes with the imprimatur of feminist du jour Sheryl Sandberg.

How to play with your baby

The first time your child learns a new skill at playtime is very exciting - for both you and your baby! Play is important to your child's development for a variety of reasons - here are some simple ideas for you to try at home.

I'm a single mother by choice

For me, being the best mother I can be means being a mum alone, at least for now. Thinking of my friends with inadequate partners, I wonder why more people don’t choose single motherhood.

Awkward wedding photos

Weird poses, surprise photobombs, bizarre editing: these are the wedding photos that should have never seen the light of day.

Four-week-old baby Riley Hughes dies of whooping cough

The mother of a four-week-old Perth baby who died after contracting whooping cough says her family has been left devastated by the loss of her "gorgeous, sweet" son.

Win a Ben & Holly's Little Kingdom prize pack

To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, we are giving away five DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!

Oh boy! Video shows family's reaction to baby surprise

Little Peyton Williams thought she was getting a baby sister named Charlee. But the two-year-old has had to settle for a doll dressed in pink after her baby "sister" turned out to be a boy.

How to help build up your baby's immune system

We all know that having a strong immune system is the best way to stay healthy – but what can we do to help it along?

'Nick, you need to call an ambulance': home birth mum's tragic death

A Melbourne mum who died after the home birth of her baby pleaded with her husband to call an ambulance because she felt she was going to die, the Victorian Coroners Court has heard.

When dads believe their baby doesn't 'like' them

Q: My two-month-old baby doesn't like me. He's perfectly content with my wife, but when I try to hold him, he gets upset and cries. I've backed off a little, thinking that he just needs a little time to get used to me, but that doesn't seem to be working. I'm starting to think I'm just not a very good dad. Is it too late for me to build a relationship with my baby?

When was the last time a stranger praised your parenting?

Wouldn’t it be great to get some nice feedback every now and then? After all, everyone likes to hear positive praise, particularly when it comes to parenting.

Special Ticket Offer, Save $8!

The Essential Baby & Toddler Show is back this April! Save $8 off the door price for a limited time only!

15 names on the verge of extinction

If you're looking to revive an older name, or don’t want anything near the top 1000 list, check out these rare monikers for your unique baby.

5 characteristics of great dads

It’s great to see a generation of dads who are more actively involved with caring, nurturing and loving their kids.

Why doesn't Australia have more breast milk banks?

When there’s no question that milk banks are important, why don’t we have more of them in Australia?

Carrie Bickmore announces birth of daughter

Television personality Carrie Bickmore has given birth to her second child.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Sign up to our 30 days of #PlayIQ challenge

Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.

Man faces jail after giving woman abortion pill smoothie

A Norwegian man is facing jail after putting abortion pills in his ex-girlfriend's smoothie, causing her to have a miscarriage.

'He's a blessing': family of baby born without eyes

Jordy Jackson was born without eyes. He has anophthalmia, which affects one in every 100,000 babies born.

Win one of 5 Cadbury Easter Hampers

With Easter fast approaching, Cadbury are giving away 5 Cadbury Easter Hampers. Enter Now!

Super fit model Sarah Stage defends her pregnancy body

Model Sarah Stage has defended her pregnancy body after critics claimed her slim figure at eight-and-a-half months pregnant wasn't "normal".

Win a Ben & Holly's Little Kingdom and Peppa Pig prize pack

To celebrate the April 1 release of Holly's Magic Wand on DVD and Digital, Essential Baby and Entertainment One are giving away five bumper DVD packs featuring the newest installment of Ben & Holly's Little Kingdom Holly's Magic Wand and many more hours of family entertainment! Enter Now!

Why I post breastfeeding photos online

I love to take pictures of my children. In some of the pictures, my younger son is nursing.

The day I broke my baby

There are things I wish I didn't know. I wish I didn't know that companies make tiny braces, small enough to hold necks no bigger than a wrist.

The place just for dads of multiples

When a couple discovers they're expecting multiples, the dad can sometimes be almost forgotten in all the excitement and preparation. But one group offers a space just for dads of twins and higher-order multiples.

Brave mum calls for domestic violence law reform

A brave mum of two has shared details of the harrowing attacks she suffered at the hands of her partner in a bid to help other victims of domestic violence.

Why I had the new test for Down syndrome

Early last year I turned 35, and having just found out I was pregnant, I opted to have the new test for Down syndrome.

Geeky baby gear

If your family is more into Star Wars, gaming and the periodic table than most, you might want to check out these geek-chic baby items.

2015: the year of the sheep

According to the Chinese zodiac, babies born in the year of the sheep are creative and enjoy spending quiet time with their own thoughts.

Breakthrough genetic testing now available in Australia

Pregnant women will for the first time have access to locally analysed, accurate, non-invasive pre-natal genetic testing when the first Australian clinic to offer the services opens its doors next week.

Grandbabies: the babies born looking old

Not a day under 65 and a lifetime of struggle! That's the look of these newborns, who look adorably older than their real age. Social networking site Reddit recently featured user submissions of adorable grandbabies, here are our favourites.

Family kicked off flight after toddler seatbelt drama

An entire family was kicked off a Cathay Pacific flight when a misbehaving toddler refused to put his seatbelt on.

Stolen baby found after 17 years

A baby stolen from her mother's arms shortly after birth has been found through an astonishing coincidence.

53 creative pregnancy announcements

Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.

IKEA hacks for the nursery and kids' rooms

Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.

36 baby names inspired by food and drinks

A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

Sign up now!

30 days of #PlayIQ challenge

Receive a daily email from Essential Baby during April with great play tips and ideas, then submit your baby at play photos to our Playwall, Instagram or Twitter for your chance to win.

 
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.