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

 

'Tired' mum dies of undiagnosed diabetes

New mum Nicky Rigby thought her exhaustion was due to the demands of looking after her baby. But the 26-year-old was seriously ill with diabetes, and died due to her condition not being diagnosed.

20 signs of a great relationship

The secret to a perfect relationship is admitting you are wrong after an argument, five kisses a day and sex twice a week, a new survey suggests.

Video: emotional 60-second Robin Williams tribute

Take a minute to remember some of the greatest films of your childhood ... and have a few tissues close at hand.

The realities of escaping domestic violence

?Why doesn?t she just leave?? is the common question people ask when trying to understand domestic violence. For many, leaving the relationship is far from straightforward.

Home truths: the DIY dos and don'ts

A professional renovator gives advice on which jobs you should do yourself, and which you should outsource.

Parenting lessons I?ve yet to learn

Instead of writing about the stuff I do know since becoming a mum, I thought I'd share some of the things I don't. These are the lessons that motherhood hasn't taught me.

Will I be wrecked 'down there' after birth?

Did you worry about how you would look "down there" after giving birth? This mum-to-be found plenty of women willing to share their knowledge.

The new weekend playgroup for working mums

Playgroups are great for kids and parents alike - but the downside is that they often meet during the week, leaving working mums out of the loop.

Letting your toddler be the boss at bedtime

Sick of spending hours trying to get your toddler to sleep? These experts say giving your child more of a say at bedtime might be the answer.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

Ezra's tragic death not in vain, mum says

Little Ezra was a "Harry Houdini" who loved trying to escape the family home. Now, after his tragic death, his parents are doing what they can to help others.

Consulting 'Dr Google' when you're pregnant

We're all guilty of turning to the internet for a quick answer when we need medical advice, but Dr Google should be approached with caution - especially when you're pregnant.

16 ways to tie a scarf

Scarfs are the perfect winter accessory. Whether you're freezing at soccer training or wanting to add a splash of colour to a monochrome top, the right scarf will sort you out in no time. Just ask Nina Proudman.

Video: When adults act like children

Ever wondered what would happen if adults were allowed to act like children? This dad's hilarious video clip will give you an idea of what life would be like.

The simple way to support other parents

We may be raising children of different ages and sexes, with different personalities, but we, as parents, aren't that different - we all have similar struggles, fears, doubts, responsibilities.

Seeing the big picture when it comes to parenting

Sometimes it feels like hundreds of tiny cracks are spreading across the surface of our lives, creeping slowly into the foundations and threatening to make them crumble. How do we hold it all together?

How to spot a lactaboobiephobia sufferer

Lactation consultant Meg Nagle refused to stay silent when Facebook removed two photos of her breastfeeding. Instead, she coined a term to describe those who don't recognise breastfeeding for the natural and non-sexual act that it is.

Win back some precious time and get FREE coupons

Membership to eBay's Bubs? Corner is free and includes a $10 coupon to spend on nappies each month - a win for multitasking mums!

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win back some precious time and get FREE coupons

Membership to eBay's Bubs? Corner is free and includes a $10 coupon to spend on nappies each month - a win for multitasking mums!

Do you suffer from Precious Firstborn Syndrome?

Testing ?no more tears? shampoo in your own eyes, warming cucumber sticks so they're not cold straight from the fridge, waking a sleeping baby to check they?re still breathing: these are all symptoms of Precious Firstborn Syndrome.

Ezra's tragic death not in vain, mum says

Little Ezra was a "Harry Houdini" who loved trying to escape the family home. Now, after his tragic death, his parents are doing what they can to help others.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

Video: When adults act like children

Ever wondered what would happen if adults were allowed to act like children? This dad's hilarious video clip will give you an idea of what life would be like.

Mums hit hardest as flu cases skyrocket

The number of confirmed cases of influenza in Australia has doubled the number for the same time last year - and women are 25 per cent more likely to get it.

The mum who had four babies in nine months

Feeling exhausted due to the demands of caring for a baby? Imagine the life of this mum, who gave birth to three boys and one girl in just nine months.

Everything baby at Big W

Lowest prices on everything baby, only at Big W. Sale starts August 4 and ends August 20 2014.

Smiggle is painting the town red!

We have 3 Red Smiggle prize packs to give away! Enter by posting a photo of something red to your Instagram.

Mum gives birth at school

Most kids have their own personal brand of oddity. Others, like these 10 weird habits, crop up again and again.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
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.