Supporting parents through a sustainable, better targeted family payments system
The 2014-15 Budget delivers $19.3 billion to support families with their cost of living through Family Tax Benefit Payments. The Abbott Government will also ensure the family payments system is sustainable in the long term and is better targeted to support those who need it most.
$28.6 billion will also be provided to maintain the current payments and eligibility for the Child Care Rebate (CCR) and Child Care Benefit (CCB).
The Abbott Government will introduce Australia’s first genuine Paid Parental Leave scheme. The commitments we made at the election were fully funded, ensuring no additional pressure on the Budget.
The most immediate way we can help families is by scrapping the carbon tax which will unburden the economy and which next year alone will save households around $550 on average.
The Abbott Government is making decisions that repair the Budget, strengthen the economy and prepare Australia for the long term challenges before us.
New supplement for single parents
From 1 July 2015, single parents who receive the maximum rate of Family Tax Benefit (FTB) Part A but are no longer receiving FTB Part B as a result of changes to eligibility will have access to a new $750 annual supplement for each child aged six to 12 years.
We know that single parent families often have fewer resources to meet living costs, and have a reduced capacity to work because of their caring responsibilities, so the new $750 supplement per child aged between six and 12 years will provide extra support.
This will benefit an estimated 86,000 families by 2017-18.
Family Tax Benefit Part B for children under six years
To meet our nation’s long term challenges, we need to encourage parents to re-enter the workforce when a child reaches school age.
From 1 July 2015, families eligible for FTB Part B will only receive the payment while their youngest child is aged under six years.
Importantly, families with a youngest child aged six years and over on 1 July 2015 that are already receiving FTB Part B will continue to receive FTB Part B until 30 June 2017.
Family Tax Benefit Part B primary earner income limit
From 1 July 2015, the primary earner income limit for families to become eligible for FTB Part B will be reduced from $150,000 to $100,000 per year.
This will ensure families on low incomes continue to be supported and taxpayer support is targeted to those who need it most.
Family Tax Benefit end-of-year supplements
From 1 July 2015, FTB Part A and FTB Part B end-of-year supplements will be returned to their original amounts of $600 and $300, and will remain at that amount without further indexation.
These payments were introduced to help minimise the impact of families being overpaid as a result of underestimating their income, but with fewer families now being overpaid, the need has lessened.
This measure will not reduce the fortnightly assistance that families receive throughout the year.
Large Family Supplement
From 1 July 2015, families will receive the Large Family Supplement for their fourth and subsequent children.
This initiative will ensure very large families have extra support to meet their cost of living and taxpayer support is targeted to those who need it most.
Indexation of Family Tax Benefit eligibility thresholds
From 1 July 2014, an indexation pause will mean income thresholds will remain unchanged for three years for the FTB Part A lower income free area, FTB Part A maintenance income free area, and FTB B secondary earner income free area.
This measure will deliver savings so that the Government can repair the Budget and strengthen Australia’s future.
Indexation of the rates of Family Tax Benefit Part A and Part B
From 1 July 2014, an indexation pause will mean the maximum and base rate of FTB Part A and the rate of FTB Part B will remain unchanged for two years.
This measure will not reduce the amounts of FTB that families already receive.
Family Tax Benefit Part A higher-income free area per child add-on
From 1 July 2015, the FTB Part A per child add-on amount used to calculate a family’s higher income free area will no longer apply.
This means that the higher income area of $94,316 will remain, without the add-on of $3,796 for each FTB child after the first.
The changes to Family Tax Benefit eligibility will help repair the Budget, ensure taxpayer funds are targeted to those most in need and encourage parents to re-enter the workforce when they are able to do so.
The Abbott Government is honouring its election commitments to make child care more affordable, flexible and accessible for Australia’s working families.
The 2014-15 Budget delivers $28.6 billion to support parents to access child care.
The Government will maintain the current payments and eligibility for the Child Care Rebate (CCR) and Child Care Benefit (CCB). The existing pause for the indexation of the maximum amount of the Child Care Rebate will remain in place.
The Government is also delivering on its election commitment to restore $12.6 million in Occasional Care funding.
Delivering genuine Paid Parental Leave
From 1 July 2015 the Abbott Government will deliver Australia’s first genuine Paid Parental Leave scheme which will provide six months paid leave and will include superannuation. This will support women to remain engaged with their employers, and help boost their retirement income.
The 2014-15 Budget is part of the Government’s Economic Action Strategy to build a strong, prosperous economy and a safe, secure Australia.
The Government is repairing the Budget so that we can build a stronger economy to generate more jobs and deliver better services.