It’s the Federal Budget designed to win an election, with not too many nasties to be found. But what’s in it for families?
In his first budget, Treasurer Josh Frydenberg has committed to tax breaks, more affordable healthcare, mental health support for mums and an energy bill supplement in the hope of giving the Morrison government more of a chance at next month’s poll.
This budget promises a surplus of $7.1 billion in 2019/20.
“Our commitment to fairness means the next generation not having to pick up the tab for the last,” said Frydenberg.
“This requires budget discipline and this much, at least, we owe our children.”
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Bauer Media’s Finance Editor, Effie Zahos says it’s import to remember that “Most of the benefits of this year’s budget will not be legislated before the election meaning you need to vote for this government before you get your perks.”
“It will be interesting to see what Labor’s reply to the budget will be – will it match it or better it?,” asks Effie. “Chances are it will have more cash to splash as the art of redirecting money from one group to another is about to step up a notch.”
Here’s what families can expect to go in their favour in the Morrison Government budget …
Treasurer Josh Frydenberg has committed to tax breaks, more affordable healthcare, mental health support for mums and an energy bill payment for single parents. Image: Getty.
Good news for working Australians is coming in the form of tax cuts. While everyone who earns between $18,200 and $126,000 in a year will benefit, the biggest winners are workers on between $48,000 and $90,000 a year.
The tax offset they were due to get in their next tax return would more than double to $1000-plus.
What that means for a dual income household where two people are earning in that range, is a $2000 windfall coming their way at tax time.
“This is money that could go towards your monthly mortgage payment, your quarterly power bill or your yearly car insurance,” the Treasurer said in his Budget speech.
“This tax relief will lift household incomes, ease cost of living pressures and boost spending at local businesses.”
Tax cuts for working Australians are coming. Image: Getty.
Energy bill assistance has been promised to almost four million Australians who will get a one-off payment to help cover the ever increasing cost of power bills.
An Energy Assistance Payment -$75 for singles and $125 for couples – will be paid to veterans, carers, single parents, aged pensioners and people receiving the disability support pension before July this year.
An additional $3.9 billion Emergency Response Fund is designed to provide financial assistance to Australians in times of natural disasters.
Aussies pay more for energy bills than most countries. Image: Getty Images
$78 million of funding will provide more housing for women and children fleeing family violence. An additional $22.5 million will help establish the National Centre for the Prevention of Child Sexual Abuse.
There is also new funding for the 1800RESPECT helpline.
The Safer Communities Fund will continue. It assists religious organisations, schools and other organisations to install fencing, lighting and security cameras.
Treasurer Frydenberg also said the government has to do more to keep our kids safe online and tackle cyber-bullying with funding allocated practical training for kids, parents and teachers.
“Just as we teach our kids how to cross the street, we now need to teach them how to sensibly and safely use the web,” he said.
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Parents of pre-schoolers have been told that the government the preschool subsidy will remain, with the government allowing $453 million for the expert recommended extended early learning, allowing children to receive 15 hours of subsidised early learning education per week in the year before school.
Treasurer Frydenberg’s budget also promises to increase school funding by 63 percent over the next 10 years, seeing it rise from $19.9 billion in 2019 to $32.4 billion in 2029.
WATCH: 5 ways to eat healthy on a budget. Continues after video …
There will be a slight increase in the income threshold for paying the Medicare levy for families, seniors and single pensioners.
GP, emergency care and specialist services for rural families are set to improve with a $62 million boost to funding.
The government has pledged $308.9 million over five years towards improving the accessibility of scan services like x-rays and ultrasounds. A reduction in out-of-pocket costs for these scans is promised as well as a reduction in price of certain medications.
Prime Minister Scott Morrison is expected to call an election for May 11.
If you’re looking to sharpen your finance knowledge, be sure to check out Bauer’s Financially Fit Females hub.
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