What will really change today?

Discover exactly which budget items will take effect today.

What will really change today?

Discover exactly which budget items will apply from today at the beginning of the new financial year. How will you be affected?

Superannuation
The concessional superannuation contributions cap will increase to $30,000 for those aged under 50, and $35,000 for those aged 50 and over, so you’ll pay just 15 per cent tax on contributions up to the new limit.

Guaranteed employer contributions will also go up 0.25 per cent, to 9.5 per cent.

Aged care
Aged care costs will increase for higher income earners. Those earning over $24,700, likely from superannuation, may be asked to contribute to their own nursing home costs. Those on a part-pension will have personal contributions to their nursing homes capped at $5000, and self-funded retirees will have personal contributions capped at $10,000. These contributions will be charged to individuals on top of basic daily care fees.

Health insurance
The threshold for the private health insurance rebate will now be available to singles earning up to $140,000 and families earning up to $280,000. Those earning less than $90,000 will be eligible for the full rebate.

Debt levy
Those who earn more than $180,000 per year will pay an extra two per cent tax on anything earned over that figure for the next three years.

Tax receipts
Anyone with a taxable income of over $100 who lodges a tax return within 18 months will receive a tax receipt from the Government, outlining how their tax dollars are being spent and reporting on the level of Australia’s debt.

Senate
The balance of power in the Senate will now be held by eight small-party and independent crossbenchers. This will be a mixed blessing for the government, as it means the carbon tax will be repealed, while Palmer United senators have indicated they will oppose other pieces of Government legislation, such as GP co-payments.

Minimum wage
The national minimum wage will increase to $16.87 per hour, or $640.90 per week.

Motorcycles
Those living in NSW can expect to see more motorcyclists weaving between lanes of slow moving traffic, as the practice will today be legalised in that state. Motorcyclists will, however, have to keep to a maximum of 30 kilometres per hour when doing so.

National Disability Insurance Scheme
The National Disability Insurance Scheme (NDIS) will begin in the ACT, the Barkly region of the Northern Territory and in Perth Hills, ahead of a country-wide rollout, expected to be completed by 2019.

 

Opinion: The devil you know

Many of the Abbott Government’s more controversial budget items will not take effect today, as they must first pass through the new Senate. And, with such a diverse crossbench, it will be difficult to predict which pieces of legislation they will choose to pass.

I am hopeful that some of the more unfair budget items, such as the $7 GP co-payment, will be rejected. But, regardless of the hope such an unpredictable crossbench can bring, it is that unpredictability which is making many Australians nervous. Not knowing what Australia’s political future will hold makes it difficult to feel secure in any plans we make as individuals.

So what do you think? Would it be better to know exactly which pieces of legislation will be passed, even if you don’t like the decision? Or do you prefer to live in doubt, but with the possibility of a good outcome? And how will the changes coming in today affect you?





    COMMENTS

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    Adrianus
    1st Jul 2014
    10:02am
    Uncertainty has been a major problem for Australia's economy for quite a few years now. I know many people believe it's a good situation having a decent number of Independents with hidden agendas because "it creates healthy policy argument." However, I think it's simply counter productive. Would you own shares in a company that hired a CEO then hired a team of people to make his job more difficult?
    particolor
    1st Jul 2014
    12:02pm
    I certainly would !!! I Love seeing CEO's Stewing in their own Juices !!
    Anonymous
    1st Jul 2014
    3:04pm
    This government and every other is not a business - it is a service and it is time they got a grip on that reality. Such a change of attitude would make the world of difference to what they dream up as their solution to all our problems - problems created by their own past ineptitude, whether in government or opposition.

    These fools need to get away from this 'business model' idea and start operating with some sense - and that means no more stupid privatising that raises costs indefinitely and more control over finances - without taking from those with the least - often the least as a result of those same dumb policies and ideas so rife in the past thirty years.

    There are certainly some ages of entitlement to be resolved - but not at the expense of pensioners and those thrown out of work.
    Adrianus
    1st Jul 2014
    3:24pm
    The politicians are just the lead singers in the band. It's the Public Servants behind the scenes playing the tune that we are dancing to! I suspect they have swung too far to the right. Once left wing intellectuals, these people are now very high income earners getting bonuses in excess of $1m. They earn more than the PM. I suspect they now have little regard for us poor proletarians.
    Patriot
    2nd Jul 2014
    6:45am
    The Grappler,
    Unfortunately, I have to disagree with you. Australia, without getting permission from the electorate, has been registered as a Business for quite some time now and - indeed - the PUBLIC SERVICE has acted accordingly.
    Convince yourself on the following YouTube Clip: http://www.youtube.com/watch?v=umVj5XQYAi8
    Adrianus
    2nd Jul 2014
    9:21am
    Patriot.
    I, along with many sections of the media thought the USA President had made a mistake when addressing his audience here in OZ made reference to "the Queen of Australia." Was his respect being shown to Quentin Bryce and not Elizabeth as we all assumed?
    Adrianus
    3rd Jul 2014
    6:49am
    Has the ALP sold us to a USA corporation? Is "The Australian Government" a company incorporated in Chicago?

    1st Jul 2014
    10:08am
    The HONEST citizen has nothing to fear.....and NOTHING has changed yet...at the moment it's all rumour and scaremongering...folks imaginations run wild...do NOT be anxious.

    1st July today.....now let's wait for the 1st January and 1st July 2015...they will be interesting
    particolor
    1st Jul 2014
    11:56am
    PIX.. Do not get Anxious when Surrounded by 450 Hells Angels doing 30K's all around Your Car while passing You !!!.. That should be Interesting ??
    Anonymous
    1st Jul 2014
    3:09pm
    There are more angels with me than with them
    pete@nakedhydroponics
    1st Jul 2014
    10:43am
    On the one hand, political uncertainty is never good for consumer confidence, so I expect my online business will continue to suffer (as it has been since Gillard announced an election far too prematurely).
    OTOH, this could be seen as an opportunity for connected voters. We have far more chance of making our wishes felt in this parliament than in one dominated by ideology -of either stamp.
    What I wish for most for Australia is the adoption of policies that simply work, rather than policies pursued for purely ideological reasons. It is evident no amount of public opinion or empirical evidence will ever sway Abbott or Hockey.
    Anonymous
    1st Jul 2014
    3:07pm
    Or for that matter their 'opposition' - that lot are still entrenched in their ideologies of 'equality by force' - which so far have devastated our society and rendered many poverty-stricken without reason while offering to others a free ride.

    Totally stupid.
    Young Simmo
    1st Jul 2014
    12:00pm
    Regardless of all the negatives, I believe the extra $200 per fortnight for the aged couples pension will go a long way.
    genimi
    1st Jul 2014
    1:36pm
    must have missed that one Young Simmo - where is that discussed?
    Young Simmo
    1st Jul 2014
    1:51pm
    Sorry mate I was being outrageously sarcastic.
    Anonymous
    1st Jul 2014
    3:08pm
    Nice to see that someone else followed up on my long-stated view that the pension should be double what it is now. In Cuba retirees get 50% of the best of their last five year's work.... amazing.. I'd be in clover...
    Adrianus
    1st Jul 2014
    3:14pm
    In Brunei they get a free overseas holiday!
    Young Simmo
    1st Jul 2014
    3:17pm
    In West Aust the overseas holiday is Rottnest and you pay.
    particolor
    1st Jul 2014
    7:24pm
    I was going to write that when He first Posted !! ......I must have Missed Something in Tony's Translation of... The Good Times ???..But decided not to in case His Conscience ( WHAT CONSCIENCE) got Him Somewhere ??.....
    Get a Job in some Bullsh*T Tabloid Somewhere Simmo !!
    particolor
    1st Jul 2014
    7:33pm
    Urgent PS...Tonys Conscience that was !!!
    Adrianus
    2nd Jul 2014
    11:23am
    Nice wordplay there parti!!!!
    A clear conscience is usually a sign of a bad memory.
    Oars
    1st Jul 2014
    12:16pm
    Another hung government- another excuse to do nothing but winge. The "little people" have every reason to be nervous. They should think twice about supporting negative groups that promise them the earth, then place the Country into debt. But no- old habits die slowly. Very slowly. Sad- we had a great country once- but no longer.
    particolor
    1st Jul 2014
    1:19pm
    Still better than Iraq !!
    Young Simmo
    1st Jul 2014
    1:31pm
    Spot on particolor, we are probably the luckiest country on Earth.
    Young Simmo
    1st Jul 2014
    2:39pm
    Hang on a mo, my last statement will apply when I get 1st Division in lotto.
    Adrianus
    1st Jul 2014
    2:40pm
    We also have a stronger economy than Greece. And we get to work till we're 70, those poor buggers are pensioned off at 60! We are the luckiest by far!!!
    Young Simmo
    1st Jul 2014
    2:40pm
    Maybe I will settle for 2nd division.
    Young Simmo
    1st Jul 2014
    2:44pm
    Yeh Frank, I retired at 62, now at 74 I spend all day being retired, then totally exhausted I drag my self to the beer fridge. The worst part is I know I have to do it all over again tomorrow, such is life.
    Young Simmo
    1st Jul 2014
    2:45pm
    Get off my back particolor, I am taking this conversation serious.
    Adrianus
    1st Jul 2014
    3:02pm
    Does anyone else think there are more protest groups in politics these days? It seems the more whinging and whining you do the more support you get from the electorate.
    C'mon people!!! B+ is not just a blood group!!!
    Adrianus
    1st Jul 2014
    3:06pm
    Young Simmo, I'm 63 and unemployed. Have been for 2 years, unemployed that is. I may as well be retired.
    Young Simmo
    1st Jul 2014
    3:08pm
    Trouble is Frank, it is not the electorate we want support from, it is those suddenly out of site Pollies. Have you noticed that out of about 300 Federal Politicians, Clive Palmer is the only one that can answer a question with a YES or NO. I was going to say that is probably because he has more GUTS than the rest, but he might take that the wrong way.
    Anonymous
    1st Jul 2014
    3:10pm
    As regards debt - we have yet to see this lot actually do anything other than raise the debt ceiling in preparation for massive borrowing 'forced' on them by the recalcitrance of the Senate.... and another round of sudden unexpected Black Holes.... of course the same 'crisis' will force them to sell of the silver and the furniture and burn the walls for heating and cooking...

    Smoke and mirrors.. smoke and mirrors.
    granet
    1st Jul 2014
    1:45pm
    regarding new debt levy, I thought it would be on the whole income of those earning $180,000 +, but as I read here, looks like it is only that amount over $180,000. So if someone earns say $200,000 pa they only pay 2pc on $20,000 which is only $400 extra tax,
    I think this has only come about to make it look like the rich are doing some lifting when they are not actually lifting much at all.
    Adrianus
    1st Jul 2014
    2:52pm
    If someone earns $450,000 they will only pay $5,400 extra tax. I don't know if it's enough either. I hear some people are asking their boss for a wage cut so they don't have to pay the extra tax.
    Anonymous
    1st Jul 2014
    3:12pm
    As usual - a joke.
    Adrianus
    1st Jul 2014
    3:49pm
    Check Ross Greenwood. no joke.
    Adrianus
    2nd Jul 2014
    8:58am
    If you had a salary of $180k and your boss told you because you have done such a good job Grap old boy, you can have a $2,000 pay rise. Quite frankly, with the complexity of the issues now, you would have to say. "Boss, let me check with my Financial Planner before I accept."
    Theo1943
    1st Jul 2014
    2:56pm
    Yes, only income above $180K. Tony said on TV how he would be paying $6400 extra tax of his $1/2 Mill. OF course this $500K doesn't include his Government house, his chauffeur-driven car, his meals, his air travel, the electronic gearbox given to him by Japan he forgot to declare, and all his other perks. There's no 2% of them.
    Young Simmo
    1st Jul 2014
    3:03pm
    Theo1943, it's not all Scones, Jam and Cream for poor old Tony, he still has to walk outside each morning and pick his paper up.
    Kato
    1st Jul 2014
    4:20pm
    Invest in people, infrastructure and technology for future prosperity .But Nobel prize winning economist Joseph Stiglitz says if Australia wants to prosper in the coming years the Abbott government should be spending more, not less.STEVE CANNANE, PRESENTER: The Nobel Prize-winning economist Joseph Stiglitz has warned that the Abbott Government's proposed spending cuts are a threat to Australia's future prosperity. Professor Stiglitz, who is in Australia for a series of public lectures, has told Lateline Australia's future relies on investing in its people and that means spending more, not less. And the Nobel laureate had some harsh words for multinational companies avoiding tax, describing the amount of tax the tech giant Apple pays as an outrage. I spoke to Professor Stiglitz earlier today at the Australian National University in Canberra.
    STEVE CANNANE: Well, Tony Shepherd, the chair of the Commission of Audit, made the point today that the Department of Human Services writes out cheques for $400 million per day. How is that an investment?

    JOSEPH STIGLITZ: A country's most important resource are its people. And if you don't invest in your children, if you don't invest - make sure they have adequate nutrition, education, health, it will jeopardise your future.

    STEVE CANNANE: So you see welfare as an investment?

    JOSEPH STIGLITZ: Appropriately-designed policies are clearly an investment. One of the reasons the US has not been performing as well as it should is that if you're not lucky enough to be born with the right parents, able to give you a good education, your prospects are really bleak. The likelihood that you'll be able to live up to your potential are really very small
    STEVE CANNANE: The Government though is making the point that we're already paying a billion dollars to finance the debt per month on the government debt and that is likely to blow out even further as Australia's population ages. Is the kind of spending increases that you're advocating for unsustainable?

    JOSEPH STIGLITZ: They're very sustainable. I mean, think about it the following way: if you were a firm and you could borrow at very low interest rates - in Australia, the United States are currently able to borrow at a negative real interest rate. You know, take into account inflation. And you could take that money and you could invest it in high-return investments, investments in infrastructure, technology, education, in people, in making sure that all of your citizens are able to live up to their potential, then these investments more than pay back. We've done studies in the United States - I haven't done them for Australia - but we've done studies in the United States where we looked at the return on these public investments across the board, and they yield a far higher return than the cost of cahttp://www.abc.net.au/lateline/content/2014/s4036416.htmpital. So, it's actually making a country stronger when we make those investments.
    Polly Esther
    1st Jul 2014
    5:11pm
    When you're feeling a little down and you've got a big frown, "Don't worry! be happy"
    She'll be apples tomorrow when the sun will give a little shine and you'll feel just fine, "Don't worry! Be happy". See it's so much better when you stay in tune, Don't worry! be happy.
    PS If he sun don't shine tomorrow give me a call.

    2nd Jul 2014
    10:25am
    Folks would be much better off if they said to themselves..'I must, I can, and I will'...instead of...... 'Woe is me, owe is me..what shall I do, what shall I do?'
    Adrianus
    2nd Jul 2014
    11:34am
    Sure PIX, but don't wait until 1st September to as someone RUOK?
    Not Senile Yet!
    2nd Jul 2014
    11:37pm
    America/USA is slowly beginning to see the error of their ways from the past in not investing in their own people!
    Part of the cause of their economies' melt down was brought about by the insistence of a non-regulated Banking System which allowed the Greed is Good guys....to self destruct!
    A Whole city went Bankrupt in Detroit......simply because they made cars people couldn't afford or did not want....ie petrol guzzlers! They did this while reduces every workers pay!
    Yep!...self destructive....simply through greed!
    Aussie Car Makers were doing the same.....Love the Holdens and Fords.....but should you keep investing in the big cars when your competitors are making smaller better ones (Toyota, Kia etc etc)
    By the time they changed their focus (joke on ford) it was too late!
    Change is part of Life....so is it part of Good Management.....but our Pollies have not changed at all!
    They think change is about Balancing a budget by reducing Government Spending on Welfare.
    The Economic Experts...Worldwide....have been telling Governments to invest in their people for 20years!
    They should not have a work for the Dole scheme...so Victorian as to be Hilarious!.....they need to invest in assisting people to re=train or upgrade their skills.
    When it comes to the Elderly.....upgrade their qualifications to match their experience......so they can retain employment in no physical areas and in Consultancy......that way they can increase their (the Govt's) tax income.....instead of just paying the Dole for No Return!
    People on a Pension....should be allowed to work Part-time without Penalties/loss of Pensions....... Busy people get Sick less often.
    The extra money earn't will go into the economy and the Gov't will get the GST anyway. Besides the extra money may assist them to retain their Private Health Insurance which in turn would reduce the claims on Medicare!
    The Governments of today are not adapting "Running a Business" attitude at all!
    Everyone knows that if you do not invest back into your business....then you will go broke!
    The Govenment's need to invest back into their business....that of Tax Collection!.....To do this you need to increase the tax income......which means putting people back into jobs!
    Cutting Spending only reduces the amount of money circulating in the Economy and causes everyone else to follow suit.....commonly called downsizing in USA.
    It is a false economy and a failed one.
    If you keep a man poor you only make an enemy!
    If you provide him with the means to get himself out of the poorhouse....then you give him dignity.....and in turn he will gladly pay tax for that privilege!
    By helping people to educate/train the Governments of the World would be only creating a more solid and reliable tax income for themselves!
    A Reward System will always out perform a Penalty System!