The Federal Budget this year has just been announced and here’s a quick run-through of the important points:

 

Thinking of having a baby?

The baby bonus is being scrapped from March 1 2014, and replaced with an increase to the rate of Family Tax Benefit A. This benefit will increase by 2000 dollars of the first child, 1000 dollars for the subsequent as long as Paid Parental Leave is not claimed resulting in a 1.03bn dollars saving.

Have school children?

From January 1 2014 schools will be funded per student. Primary schools will receive 9271 dollars per child and high school, 12,193 dollars per child. Students who have a disability, from a low socioeconomic status, attending a regional, remote or small school, or from a non-English speaking or indigenous background will receive extra funding on top of the original amount.

Pensioners:

From July 1 2014, pensioners who have owned their home for 25 years and over and decide to sell it, can put any profit up to 200,000 dollars into an account and will be exempt from the Age Pension means test for up to 10 years.

Single Parents:

They will no longer lose eligibility for a Pensioner Concession Card (PCC) if they earn too much from employment. From January 1 2014 single parents studying with the Newstart Allowance will receive 62.40 dollars a fortnight.

Disability:

19.3 billion dollars will be funded over seven years from 2012-13.

Entrepreneurs:

378.6 million dollars will be invested by the government to stimulate private sector investment in SME's. Tax arrangements will be improved to encourage invested to back businesses; there will be a program to help SME's to bid for public sector work, 350 million dollars program to stimulate venture capital investment and money to promote success. Retirees looking to downsize will benefit from a tax change delivered in this year’s budget.

Health:

Health savings includes changes to Medicare payments and removal of health care tax breaks resulting in 1.7bn dollars savings.

Other important numbers:

• The unemployment rate in 2013/14 predicted to increase up to 5½ per cent.
• In addition, GDP growth is forecasted to be at a mere 2½ per cent in 2013.
• 43bn dollars savings identified over the next four years

A comment by Ross Gittens, an Economics Editor for the Sydney Morning Herald; “…for a government that's been far too timid in tackling unjustified spending programs and tax breaks, this budget is surprisingly brave.”