The New Year is prime time for taking a look at the household budget.
But as you plot out how to negotiate the year ahead, it’s worth noting there are a few new things you may need to factor in (or should that be factor out?) this time around.
They relate to your family benefits.
Extensive changes to these and several Centrelink payments have been announced since the belt-tightening 2016 federal budget that will directly impact millions of Australian households.
Here are some of the most crucial.
You won’t get a Schoolkids’ Bonus.
Previously, families received $430 for each child in primary school and $856 for each child in secondary school, which was automatically deposited in two instalments – one in January and one in July.
But there will be no such payments coming this month.
The scheme, designed to help families cover costs associated with their child’s education (eg. school fees, stationary, books and uniforms) was scrapped last year.
You may no longer receive a Family Tax Benefit supplement.
As of this financial year, only families with a combined income of less than $80,000 will be eligible for the FTB Part A supplement.
This will mean plenty of families will lose out on the lump-sum payment of up to $726 per child come tax time.
Parental Leave Pay now counts as income.
For parents of children born after October 1, 2016, Parental Leave Pay and Dad and Partner Pay now count toward your income according to Centrelink.
Depending on your circumstances, this could have an impact on your or your partner's income support payment, as well as your Family Tax Benefit.
The changes do not apply to children born prior to October 1.
And, so do fringe benefits.
Do you get fringe benefits from your employer? Maybe a car, a phone, help with petrol, or living costs?
Well previously Centrelink only counted 51 per cent of that value as income, but now they're counting the lot.
This is used when calculating your FTB, Child Care Benefit, Parental Leave Pay and so on, so you may see a reduction in some of these payments this year.
If that's the case, the Department of Human Services will let you know how this change affects you and what you need to do.
The Energy Supplement will no longer be a thing.
This little boost, offered to those who receive the FTB and income support, was introduced by the Gillard government to help families cope with rising energy costs. But come March 20, it's set to change.
Firstly, it won't be offered anyone who applies for the FTB after that date. Secondly, it will be cancelled for anyone who only became eligible for the FTB after September 20 last year.
For those who snuck in before then, you should continue to receive the supplement (up to $4.28 per fortnight for teenage children) as normal.
Nor will the Single Income Family Supplement
As of July 1, families with one income earner will no longer be able to apply for an annual payment of $300.
Existing recipients will continue to receive the payment, as long as they're still eligible as of 30 June.
For more information on these and other changes to family payments, please refer to the Department of Human Services website.
Top Comments
As a single income family soon to be 6 on 90 000 a year we will be able to tighten our belts and get by without too much trouble, we already don't take holidays and buy all clothes second hand etc. but there will be room to save without starving.
But when i was a kid growing up as this would have been a disaster for my single part time employed mother of 4. At one point during my high school years the soles of my school shoes were held on by wrapping shoe laces around the whole shoe. There was never enough sanitary items to go around so when I and my sisters had our periods and we often had to make up our own, most times this happened I just wagged school. We regularly only got two meals a day and I would sometimes have to stay home from school and babysit younger siblings if mum got called in to work. These changes will adversely affect many people including many children.
Also I could be wrong but I thought the FTB supplements were meant to correct underpayments? We always deliberately underestimated our income because we were so nervous of being in debt via overpayments.
These changes seem to have snuck unseen the radar, but for a family of three kids the ftb supplements changes mean losing over $2100 a year. No one expects handouts but this is a huge amount to lose, having received it automatically for years beforehand... and two parents earning a combined income of $80,000 aren't exactly on easy street
Its easier to slug parents than it is to get big companys to pay tax