A key Federal Government report, known as the Commission of Audit, has recommended major changes to Family Tax Benefit and childcare assistance today.
Key changes include:
- Abolition of Family Tax Benefit B – the payment that goes mainly to single income families
- Tighten eligibility for Family Tax Benefit Part A, removing the base rate for higher income families
- Lower the Paid Parental Leave scheme wage replacement cap to $57,460
- Scrap the child care rebate and child care benefit and replace them with a single, means-tested payment
What does it mean? Basically it means more means testing so higher income families will lose things like the child care rebate.
Family Tax Benefit B provides up to $3,018.55 for some families who meet certain conditions, so I wonder how this will affect those families?
There are also a number of other areas of cuts recommended which will affect working families, including the aged pension, Medicare benefits, hospitals, Pharmaceutical Benefits Scheme, National Disability Insurance Scheme, carers’ payments, aged care, the Disability Support Pension, and school funding. Read more here.
The real impact will be known when we understand whether the government intends to act on these recommendations and what levels the new payments and new income cut offs will be
Currently child care rebate is available to all families regardless of income and some form of childcare benefit is available to families whose income is up to $170,404 (for three children) plus $32,219 for each child after the third
The Federal Budget will be released on Tuesday May 13.
Watch this space.