The 2006–07 Commonwealth Budget will be released on
Tuesday, 9 May at 7:30pm AEST

http://www.budget.gov.au/

Is there anything interesting we can expect from the budget?

No real idea yet :)

There's talk of more benefits for families for three or more kids, apparently the government seem to think that offering $10 a week extra will make people with two kids have another one....? <_<

They are increasing the maternity benefit from $3,166 to $4,000 per child.

They are also increasing the amount a person can earn, from $33,361 to $37,500 before they begin to reduce the FBT part A benefit.

Not sure what is happening with FBT part B.


I've also started to read the Political Point scoring about it all :no: .

The opposition saying "THE tax system was biased against women .. When they go back to work following the birth of a baby, when they work a little bit of overtime, they get hit with a tax grab of 50, 60 or 70 cents in every additional dollar they earn."
It's only going up because the benefits they get when not working is going up. Therefore the more they get in benefits, the more they can lose when they are no longer entitled to the benefits, once they start working.

My first gripe with that comment though, is that it doesn't just effect women. There are many stay at home Dads these days, and it affects US in just the same way.
Therefore it isn't "biased against women", it must be biased against Men and Women in exactly the same way, which means it isn't exactly biased, if it is equal ?

Now if they say it is biased against parents who choose to stay home at first and then return to work, then that is a different matter entirely.

My second gripe is the innacuracy of the comment "a tax grab of 50, 60 or 70 cents in every additional dollar they earn"

Politicians........ !!

More ammunition to use when I say to Malc "I want a baby now!" :lol:

Seriously, it will be a big help though. I want to go back to work part time, but as I am self employed and work from home anyway not entirely sure how everything works... got to sort out an accountant for this year end, maybe I'll pick his or her brains. (Could I just make it absolutely clear that this is all for the future and there are no buns in any ovens at the moment in case anyone gets the wrong idea!!!!)

With the FBT thing, I'm assuming the earnings are based on what both of you bring home, e.g. if Malc was bringing home $37,500 that would be the cut off, not that I could earn the same as well?

Totally agree with you about the "biased" comments though, politicians...! :rolleyes:

Working it out is actually a bit more complicated than that. It varies depending on exact incomes, and number and age of children.

Here are some current examples:

Family with 3 children between 5 and 13, Single gross income of $50,000 per year:
Possible Family Assistance of $365.54 per fortnight or $9,530.15 per year.

Family with 3 children between 5 and 13, Joint Income of $75,000. One wage $50,000 2nd wage $25,000
Possible Family Assistance of $132.30 per fortnight or $3,449.25 per year.

Family with one child under 5, Single gross income of $50,000 per year:
Possible Family Assistance of $161.70 per fortnight or $4,215.75 per year.

Family with one child under 5, Joint Income of $75,000. One wage $50,000 2nd wage $25,000
Possible Family Assistance of $44.10 per fortnight or $1,149.75 per year.

If you are both on $40k per year each, with one child under 5, then you get $44.10 per fortnight or $1,149.75 per year

Go up to $50k per year each and you get NO benefit.

Gosh that is confusing! :wacko:

Aren't these things designed to be confusing though? :mellow:

Blimey, I was expecting a completely different remark Marco!! :lol:

:D :D It's actually quite simple when you know how it works ;)

But that's what my wife says when I ask her to remind me how to boil an egg :)

From July 1 this year, the Government has dropped the top tax rate from 47 percent to 45 and significantly altered thresholds.

The point at which the top marginal rate applies has risen dramatically from $95,001 to $150,001, the old 42 percent rate has fallen to 40 percent and now kicks in at $75,001 instead of $63,001, and the 30 percent rate (which remains) now applies from $25,001 to $75,000, instead of between $21601 and $63,000.

The 15 percent rate applies from $6001 to $25,000, cutting in $3400 higher than it did previously.

Treasurer Peter Costello said the average family with two children would benefit by $30 a week once family payments were taken into account.


For low income earners, the Low Income Tax Offset will increase from $235 to $600. It will phase out from $25,000 to $40,000. It means a low income earner will not pay tax until their annual income exceeds $10,000

http://www.budget.gov.au/2006-07/speech/html/Speech.htm

Is there any sites where you can put in your details and see if there are any changes? There was something like that in the Uk and it helped the financially illiterate (like me) deal with it all.
Nicky

Not that I am aware of, but the basic Tax changes are:
Income
$25,000 Tax is now $2,850.00 ( 11.40% ) it was $3,360.00 ( 13.44% )
$35,000 Tax is now $5,850.00 ( 16.71% ) it was $6,360.00 ( 18.17% )
$45,000 Tax is now $8,850.00 ( 19.67% ) it was $9,360.00 ( 20.80% )
$55,000 Tax is now $11,850.00 ( 21.55% ) it was $12,960.00 ( 23.56% )
$65,000 Tax is now $14,850.00 ( 22.85% ) it was $17,160.00 ( 26.40% )
$75,000 Tax is now $17,850.00 ( 23.80% ) it was $21,360.00 ( 28.48% )
$85,000 Tax is now $21,850.00 ( 25.71% ) it was $25,710.00 ( 30.25% )
$100,000 Tax is now $27,850.00 ( 27.85% ) it was $32,760.00 ( 32.76% )
$200,000 Tax is now $67,850.00 ( 33.93% ) it was $79,760.00 ( 39.88% )


There is a Tax calculator, for 2003/2004/2005 at http://calculators.ato.gov.au/scripts/ASP/...axCalc/main.asp but this doesn't have the new rates yet, and probably won't until July 1st.

Thanks looks like we have gained a bit in tax and I have to go to Centrelink once we get the passports back with PR visas in to see about child benefits. So chances are that we will be a bit more comfortable which will take the pressure off for me to find work :) .
Nicky

A web page is now available for Tax comparison at:
http://www.thecouriermail.news.com.au/tax/calculator.htm

It does not include any changes in FTB though.

At least you only get one budget. Here on the Isle of Man we have increases when the UK have their budget and then they have a 'Manx' budget and they add some more on.

Pubs prices etc go up twice in one month. :o

Sorry to disapoint but we do get two. The Federal one and the State ones, although the State one doesn't have the same impact on individuals.

Federal
http://www.budget.gov.au/

QLD
http://www.budget.qld.gov.au/


I think the politicians should reword the budget, especially on tax cuts etc.

This latest one basically says "Higher earners get bigger relief due to thresholds rising"

If they were to say:

Low income earners on about $25,000 gross will pay 11.40% of their income in Tax

Average Earners on $55,000 gross will pay 21.55% of their income in tax

and High Earners on $200,000 gross will pay 33.93% of their income in Tax

It sound very different ? ;)

I think it's the WA state budget today......