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?



#4 Wishing2011

Posted 12 August 2009 - 09:33 AM

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?



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


Get your FREE Baby & Toddler Ticket!

Get your free ticket to the Essential Baby & Toddler Show Brisbane (4-6 March). Register online now to save $20!

Newborn baby found in a nativity scene

Police are trying to trace a woman who abandoned a baby boy in the manger of a church nativity scene.

Life would be harder without my kids

The Humans of New York Facebook page is well known for sharing touching, real stories from one of the world's biggest cities – and it's just hit the heart of parents everywhere.

Mum dresses as Wonder Woman for last day of chemo

A Brisbane mum dressed up as a superhero to celebrate the end of her chemotherapy and created a moment her family will remember forever.

How a raisin can predict a toddler's IQ

All you need to assess a child's future intelligence is a plastic cup and a raisin, according to new research.

Former Hi-5 member's cannabis hope

Former Hi-5 star Tim Harding hopes a cannabis-derived drug will help control his daughter's epilepsy, which sees the four-year-old suffering between 50 and 100 seizures a day.

The top 5 reasons your toddler throws a tantrum

Whilst to the outside world little people may appear to have it easy, it's actually not always the case – just ask any toddler who's had their toast cut up the wrong way.

Glenn McGrath thought he'd lost his wife and baby

Australian cricket ledged Glen McGrath has spoken about the moment he thought he might lose his wife, Sara and their baby daughter, Madison.


Inside my Centrelink nightmare

Mother Bec Smith has been trying for months to access Centrelink payments. A "serious error" is preventing her.

Warnings over push for hourly childcare billing

Australia's peak childcare body has called for caution around the Turnbull government's push for childcare centres to charge parents by the hour, not by the day.

Cate Blanchett thought about adopting for years

Cate Blanchett says her recent adoption of a baby girl had nothing to do with wanting a daughter after having three sons.

Kate Walsh: 'I can't have kids'

Grey's Anatomy star Kate Walsh has revealed she is unable to have children because she has experienced early menopause.

The parasite that could boost fertility

The Tsimane women of Bolivia are often revered as among the most fertile in the world - on average having 10 children in their lifetimes -- but some are even more fertile than others.

Family may sue cousin over genetics

A Melbourne couple is suing the Royal Children's Hospital for failing to diagnose a genetic disorder in their first child - an error they allege caused them to have another child with severe disabilities.

Strange things mums have done in labour

While most women in labour focus on the upcoming birth of their baby, some women do more interesting things.

Michael Clarke reveals baby's name

When Michael Clarke said he was wrapped around the finger of his little princess, he wasn't joking.

The logistics of breastfeeding twins

Our life is more or less divided into neat four hour parcels of time and it's hard to get much of anything done in the time between feeds.

How to stop people ruining Christmas

We can make a conscious effort about how we react to those curly Christmas day scenarios that can send us up the wall, or should we say chimney.

Lots of formula offers for desperate mum

The mum who was down to her last three tins of baby formula said she had received hundreds of calls and offers to send her formula.

Surviving breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Cot sheet brands for the nursery

With so many awesome cot sheet options these days, we thought we'd put together a list of go-to brands for you to seek out for your baby's bed.


What's hot on EB

How I survived breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Grieving father's letter to Bataclan terrorists: "...this little boy will threaten you by being happy and free"

A grieving father whose wife was killed in the attacks on the Bataclan Theatre last weekend has written an open letter to her killers.

5 challenges of motherhood - and how to see them differently

Despite the smiles, the sloppy kisses and the pure magic children bring to our lives, it's hard to deny that motherhood can be tough.

4 challenges of being a new dad - and how to face them

Becoming a parent is challenging – and that applies to both mums and dads.

My battle against antenatal and postnatal depression

I was five months pregnant when I realised I needed help.

Children swapped at birth will not be returned to biological parents

A boy and girl accidentally swapped on the day they were born will stay with the families who have raised them, a South African court has ruled.

A quarter of men believe they get 'man periods'

A British study has revealed one in four men believe they have a monthly cycle.

Baby deposit

How much do you need to save for a 'baby deposit'?

It's fairly straightforward to calculate a house deposit, but how much money do you need to save up for a baby?

Dad's beautiful note to his wife, a nurse

To anyone else it might just look like a picture of a mum having a nap with her toddler.

'I was a complete schmuck': Mike Baird opens up about his wife's postnatal depression

When his wife Kerryn was not well following the birth of their daughter, NSW Premier Mike Baird buried himself in his work.

Mum's desperate plea as whooping cough alert issued

A desperate mother has shared a heart-breaking video of her baby struggling to cope with a coughing fit caused by pertussis.

Coffee could help you live longer

New US research found people who report drinking three to five cups of coffee a day are less likely to die prematurely from heart disease, suicide, diabetes or Parkinson's disease.

The joy and dread of playdates

To live vicariously through your child is to rediscover anxieties you thought dead and buried.

Sick baby could die without scarce special formula, mum says

Lizzie Cann is down to her last three tins of a special formula in short supply.

Adorable toddler's strop foiled by squeaky shoes

We're probably all familiar with the pouty bottom lip and tightly crossed arms of a tot mid-strop.

More sex during World Cup created more baby boys

More sex during South Africa's World Cup meant a disproportionately high number of boys were born nine months later, a new study has found.

ABC Shop perfect for Christmas gifts

What a boon it would be to have your toddler's Christmas gifts covered this year. We have two awesome ABC Shop prize packs to give away to two lucky winners.

Do fitness challenges really work?

Fitness challenges aren't new. There's Michelle Bridges 12WBT and a bunch of other programs if you really want to lose weight.

What are pregnant women Googling?

Pregnancy is a huge change for any woman, so it's natural we'll have questions - and turn to Google to ask them.



Can't decide?

Check out the Essential Baby Names section for some inspiration

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.