Reported by Nicholas McCallum, ninemsn
Wednesday, May 14, 2014
Treasurer Joe Hockey warned Australia to brace for impact when he delivered his first federal budget.
‘The age of entitlement is over,” Mr Hockey said. ”It has to be replaced, not with an age of austerity, but with an age of opportunity.”
So how do you fare now that the 2014 Federal Budget has been delivered?
Families with single/double income and young children
Family Tax Benefit Part B threshold has been reduced to $100,000 and will no longer be available after your youngest child turns six and the Family Tax Benefit Part A will begin to reduce once the family’s income exceeds $94,316 per year. The School Kids Bonus will also be axed.
Income Tax changes
The tax-free threshold will stay about $18,000, despite the government’s intention to scrap the Carbon Price which was paying for it. Those earning $180,000 or more will see two percent less of their income to help pay down the national debt.
If you’re born after the new pension age
If you’re born after 1965 postpone your retirement dreams until your 70+. But the government will introduce an incentive for employers who put on older workers in their 50s and 60s. The rise to 12 percent for employer super contributions will be slowed meaning less retirement savings for individuals.
High-income households and the deficit tax
The 300,000 Australians earning more than $180,000 will pay a deficit levy of two percent of your annual earnings. It’s expected to net around $5b over the next four years.
If you’re a pensioner
If you were born before 1965, then there will be no change to the pensions for you at the moment. For anyone younger, get ready to work until you turn 70 before you can claim a pension or access your super. Pension increases will be pegged to inflation, rising twice a year.
Are you a student – allowances and HECS changes
University fees are predicted to rise from 2016 once they’re free of regulation. Current students will have to graduate before 2020 if they want to avoid a sharp uptick in their education debts. But if you earn over $50,000 expect the government in your pocket.
Disability payments and NDIS
Disability pensioners under 35 encouraged to find work and all will have payments cut if they travel overseas for more than four weeks.
If you have children
Family benefit cut when the youngest turns six instead of 18 while single-income families will be $73 a-week worse off for every child.
If you are unemployed
Unemployed and under 30? No dole for you. But you will have to wait six months until you can claim Youth Allowance.
If you’re about to receive a Golden Handshake
Politicians will lose their “gold Pass” travel which gave retired polies free first-class travel around the globe for life.
If you’re a mature age worker
Employers will get a $10,000 bonus for employing Australians aged over 50 who are looking for work.
If you’re a motorist
The fuel excise freeze is gone. Expect fuel to rise every six months with inflation.
If you’re a smoker
Anti-smoking campaigns will be cut from traditional advertising and pushed through to a social media campaign, saving $2.9m in this financial year.
If you’re a big business
Big businesses will hit with a 1.5 percent tax to cover the Paid Parental Leave Scheme.
If you’re a small business
Around 800,000 Australian businesses will get a 1.5 percent tax cut.
If you’re an Indigenous Australian
Closing the gap? Cuts of $500m to indigenous programs over the next five years.