How will the $6.3 billion Budget cuts affect you?

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The Federal Government and the Opposition have come to an agreement on amendments to the Budget Savings (Omnibus) Bill 2016 to secure passage of $6.3 billion in savings.

Comprised of 20 cost-cutting measures, the bill quickly passed through the lower house yesterday and is expected to be fast-tracked through the Senate. Every budget saving has winners and losers, so YourLifeChoices looks at how families and older Australians may be affected by the changes.

Older Australians
You will find it difficult to avoid paying the Medicare Levy Surcharge or to receive the Private Health Insurance Rebate, due to income cut-offs not being indexed for a further three years.

From January 2017, new claims for the Carer Allowance won’t be backdated up to 12 weeks.

Some low-income earners will keep their carbon tax compensation, with the Energy Supplement being preserved (around $4 a week). Those already in the welfare system before 20 September 2016 will continue to receive the payment.

New residents of aged-care facilities, who keep and rent out their family home will now have that rental income included in the income test for the pension.

Welfare recipients who owe the Government money will be prevented from leaving the country. Debts will now also be charged 9 per cent interest if a repayment arrangement can’t be agreed upon. Previously, the Government stopped pursuing social welfare debt after six years, but this limit has been removed.

The National Health Performance Authority has been closed, with duties transferred to the Australian Institute of Health and Welfare and other organisations.

Families
The Family Tax Benefit Part-A end-of-year supplement of up to $726 a year will be discontinued for families earning around $80,000 and upwards.

The paid parental leave income test will remain at $150,000 for a further three years.

The Government’s plan to give families with a youngest child under one year old an extra $1000 a year through Family Tax Benefit part B has been scrapped.

Read the full list of act changes from www.aph.gov.au
Find out more at www.abc.net.au
Find out more at www.news.com.au
Find out more at www.skynews.com.au

Opinion: Bipartisanship the key to success

Australia’s economic reform progress has been stalled for some time now, due to the balance of power in both houses shifting away from the Federal Government and a severe lack of bipartisanship. That all may change going forward with the Federal Government and opposition agreeing to reform terms on the Omnibus Bill that will cut $6.3 billion from the Budget.

Frankly, an agreement where both sides have made concessions for the greater good of the country has been a long time coming and it is refreshing to see party politics pushed to the side in an effort to balance the books.

The independents and minor parties provide checks and balances in the scheme of things, but decisions that will affect the long-term future of this country really need the majority parties to work together. This could very well be the first in a long line of reforms where by both major parties take a measured approach and agree to what is a fair middle ground.

What do you think? Do we need more bipartisanship between the major parties? Are there any changes in the Omnibus Bill that aren’t fair?

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Written by Drew

Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).
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37 Comments

Total Comments: 37
  1. 0
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    I can’t see where I will be affected in any way. What will be interesting is how the Labor trolls will manage to beat up on the government on this legislation as it has bipartisan support.

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      I agree with you there – none of this will affect me.

      Labor will have supported these moves for exactly that reason. It’s something the Abbott government did not have – a solid policy idea to work with, so that all sides could see the merit.

      I still think PPL is a turkey that needs to be cooked, eaten and forgotten. If a family on $150k cannot organise their finances so as to include developing a family – there is no hope at all, and to offer funding for this is another burden on the budget and also on the economy, since it once again supports and promotes higher ability to pay costs of living, and thus pushes higher costs for everyone through the market catering to that ability first and foremost. Nowhere is this more evident than in housing costs, the massive acceleration of which began at the time of the introduction of the Mandatory Dual Income Family (the MADIF), with the mass introduction of women into the workforce.

      One day politicians will start to work that out, and we might begin to see the end of the ceaseless whining about ‘upward pressure on incomes’.

    • 0
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      I, I, I. And the nation?
      Your post sounds so much like coalition spokespeople in front of the cameras. And then you do what the Liberal Party are masters at: put the blame back onto the opposition which is exercising government FOR THE NATION.
      You would NEVER get this coalition government, were positions reversed, to support anything other than pay rises for pollies or legislation which was conducive to class warfare and money transfer to the rich.
      Your post is again blatant right wing crap. Never changes. So lets address the facts, something you and your cohort are unable to ever do. And better still when Labor wins the next election let’s take a note out of the current opposition’s notebook and work FOR THE NATION.
      Drew: you are on the money. Were it not for INdependents and Minor parties we would all be being plundered by this class warfare government.

    • 0
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      Yes Mick, I,I,I. If you note the heading on the article it asks how the changes will affect the reader. Unlike you, I can’t speak for others nor can I work out what they are thinking so I have taken the easy way out and answered the question as to how it affects me. Again, your pro-Labor post in an article that is bipartisan is breathtaking.

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      Pro Labor. No. I post my own ideological point of view.
      The fact that my beliefs line up with some Labor policy does not make me pro Labor. The fact that I attack your anti Labor lies is the right thing to do.
      The view I expressed above was to demonstrate how Labor will work with a coalition government and the fact that when in reverse coalition governments only ever trash the nation as they do anything and everything in their power to steal back government. There is a difference!

  2. 0
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    Bipartisanship is just plain good government! Most are fed up with the constant opposition of everything by the ‘opposition’ party, instead of thinking of what is best for the country long term. Let’s have more of it!

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      … and of the partisan and non-negotiable positing of unworkable and unacceptable ideas from the government.

      All fixed for you……..

  3. 0
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    Bipartisanship went “out of vogue” long ago together with the hood of the country. Most of the cretins in government office care for ONLY THEMSELVES, no one else.

    • 0
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      In all fairness Eddie Labor is attempting to find a middle ground. Tony Abbott said no to everything when he was in opposition and that about is the difference between the two sides of politics.
      We need a political party which is working for the nation. This government is not.

  4. 0
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    The private health insurance rebate cut, I wonder what that will add to a very expensive insurance in the first place?

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      That will depend on how quickly your wage rises over the same period (the bracket creep). Looking back over the last few years, wages have not significantly increased at all so this should have little effect. What the insurance companies do at their annual grab fest is another matter entirely.

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      Which is why many choose to be in the public system.

    • 0
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      Come the recession I think there will be more having to give up insurance. It is a pain really. I’ve paid it all my life and now just before I might need it it get’s too expensive.

      I feel like a right idiot.

      Tens of thousands of dollars that could have been invested and ready to pay for treatment now all gone.

    • 0
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      I’m keeping my private health insurance. It paid out over $50,000 in the last couple of years for me alone.

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      Rae: my wife would prefer private cover but we decided that we would roll the dice and take the risk. This decision was made after a work colleague with top private cover ended up having to pay the gap and was out of pocket over $2000.
      If something besets us where we need immediate treatment then we are in trouble and have one of two options. I am nevertheless pragmatic and take the view that when the Lord comes a knocking I will try not to be too upset and will accept fate as best I can. Of course we do have the capacity to fund treatment but unlikely we will be throwing away a lifetime of work and saving as we would like to leave our children and grandchildren a legacy, not a bill.

    • 0
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      I don’t have private health insurance either but I have found that even seeing a GP can be expensive so I don’t even bother now. I see it that I will one day die so why worry about every little ailment just get on with life instead.

      I have no desire to leave my kids anything and they don’t expect me too either. If I die penniless then the state can pay for my furneral and bury me with 3 others. I certainly won’t have to spend eternity alone that way.

      I have already designed my own furneral and left instructions on what to do with my mortal remains as I just see them as a mere disposal problem that needs dealing with for health reasons.

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      I cancelled my private health insurance after two minor procedures cost a combined $8,000 out of pocket. One of the procedures was performed carelessly and had to be redone. I went public and it cost nothing at all for a procedure that cost me $5000 out of pocket when I went private. The care in the public hospital was 1000 times superior in every way and the wait was 3 weeks as opposed to 15.

      A relative with 4 kids cancelled his and I freaked out, but when his wife was diagnosed with cancer he informed me cancelling was the best thing he ever did. She got exactly the same care as friends with private cover but whereas they spent up to $50,000 in out of pocket costs, he never sighted a single bill. Yes, the accommodation was a little less luxurious (shared much of the time), but otherwise the care was identical.

  5. 0
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    Sorry I still can not afford the LNP.

    • 0
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      And Australia cannot afford the ALP!

    • 0
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      OIf you can’t afford the LNP then the ALP will bankrupt you!

    • 0
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      Coalition government: tax cuts for the rich, refusal to tax multinationals, refusal to remove tax havens as a way of avoiding Australian tax. But of course there are tax cuts for the rich (do we have debt???), cash for legislation to big business, secretive trade deals which are reputed to be detrimental to the nation and removing media scrutiny from corrupt behaviour at the top end of town.
      Cannot afford ALP?
      I’d be thinking we cannot afford this Turnbull government. It will send us broke.

    • 0
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      We were doing much better under the ALP. Debt was rising more slowly than it is now, and they weren’t grinding the battlers into poverty to fund handouts to the wealthy.

      Australia can’t afford this vile, stinking elitist government with its focus on driving increased inequality and bashing strugglers for being responsible, frugal and hard working.

  6. 0
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    KSS, you have completely forgotten that a country, (that prints it’s own money,) is very very different to a small business or a family or even most big businesses.
    It is really very obvious that this is a different dynamic, one consequence is that spending money overseas is detrimental to the Balance of payments whereas spending money inside the country, stimulates the Australian economy so increasing it’s ability to make stuff that can be sold overseas so reducing the balance of payments.
    It is in how a country goes with it’s balance of payments OVERSEAS that a country is like a family or business, and only in that respect.
    Claims that Labour is into Borrow Borrow Borrow ignores the fact that if not spent overseas it (Money) does not have to be repaid and does not become a debt around our children’s necks.
    Nor does paying more money for defence equipment that is made in Australia, only defence spendings overseas are harmful to Australia.
    What has gone wrong is that the attitude of meanness towards pensions, workers, children, etc. etc. has forced the country to rely on the Banks to create money, which is to no-one’s interest except the Banks. (pun intended).
    I wish folk could really think about these basic facts and not get carried away by judgemental self righteousness, which when you look at it closely, is totally false.

    • 0
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      KSS only sees one thing: his coalition idol. With blinkers lest he have to address the growing number of fraudulent and disreputable behaviours from the current batch of despots wanting a dictatorship government.

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      lookfar, most of our borrowings come from foreign sources and to say if you don’t spend it overseas you don’t have to repay it or it does not becomes a millstone around our children’s necks is typical of the old ostrich sticking his head in the sand, as for printing your own money, unless you can account for the value it will be the fastest way to bankruptcy your country, see zambesia under mugaby, you would need a semi trailer full of money to buy a loaf of bread there now-a-days, you state it is alright to pay more for defence equipment when it is made in Australia, maybe you could tell us why it is great to pay through the nose.
      unless we become smarter and more cost effective this country, Australia, will go the same way as greece, italy and many other western countries, I can assure you it is closer then we think, as an example, in holland, germany it takes a week to do a road equivalent to the same taking six months or more over here and the cost is at least twenty times more and you still try to tell us how good we are traveling and as for the comments of our great labor stooge and union leader mick, what else do you expect of a labor troll.

    • 0
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      Nice to see the big business liberal troll back with posts still out of the LIberal Party manual.
      The issue you cannot face is that this government like the one before it and the one before it again cannot face the fact that being a part of the world economy is a trendy cliche which governments use to hide bad management. The reality is that a country is like a family home: you cannot spend more than you earn. Whilst the balance of trade is against Australia we are spending more than we earn. So then we sell off everything to pay for this lifestyle…..and we know where that would end up in our own lives. It will be no different for the nation.
      Money spent domestically (not on imported goods and services!) may not be efficient but it does not ruin the country. Money spent where we have to pay foreigners will. There is a difference.

  7. 0
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    Bipartisanship only when it suits them and cuts apply to others!!

    How about bipartisanship to remove all special Pensions for Politicians, Govt Bureaucrats and Judges, and make all apply for Age Pensions as the rest of us? This could save heaps to help the Budget – anyone listening in the Govt or Labor?

    How about bipartisanship to change the Tax rules, and make all Large Companies and Multinationals pay a minimum amount of tax? Would help the Budget recover in no time.

    • 0
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      Of course you are 100% correct George. The Abbott and Turnbull governments say one thing and do another, goad Labor when they have stolen their policies and generally act like thugs and crooks………because they can…….with a generally compliant media being politically correct. And you wonder how they get away with it?

  8. 0
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    What affects the reader affects the community in the fascist county

  9. 0
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    So I don’t get my $1000 baby bonus after all.

    • 0
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      and I was so looking forward to another $1000.00 handout.

    • 0
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      And WHO introduced the Baby Bonus? One of the worst cases of vote buying I have ever seen….followed by the Paid Parental Leave Scheme.
      It is time that governments who intentionally in election campaigns have elections declared invalid and are thrown out of the parliament for the lying used car salesmen they are.

  10. 0
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    An entire continent of mineral riches shared among a mere 23million people, guaranteeing per capita national wealth as far as any eye can see. A Saudi Arabia of the Southern Hemisphere, only much better.

    Among the lowest current per capital national debt levels in the developed world.

    A true working democracy.

    Yet there is nothing but complaint?

    Is the problem the economy or wealth distribution, or expectations, or what?

    Who shapes all these things and to what end? Is anyone really ‘in control’?

    Seems to me we’re all cannon fodder looking for scapegoats and reassurance, while the real movers and shakers and power brokers stay out of our view.

    Try getting a ticket for the World Economic Forum in Davos. None of us ever will.

    Faculty member Steven Strauss at the Harvard Kennedy School, points out that many of the WEF’s strategic partners (who in return for financing the annual meeting have the ability to set the intellectual agenda for the meeting) have been convicted of serious criminal, civil, or human rights violations, raising significant issues about the forum’s legitimacy as a neutral convener on certain topics.

    “Davos Man” is a neologism referring to the global elite of wealthy (predominantly) men, whose members view themselves as completely “international”. It is similar to the term Masters of the Universe attributed to influential financiers on Wall Street.

    Davos men supposedly see their identity as a matter of personal choice, not an accident of birth. According to political scientist Samuel P. Huntington, who is credited with inventing the phrase “Davos Man”, they are people who “have little need for national loyalty, view national boundaries as obstacles that thankfully are vanishing, and see national governments as residues from the past whose only useful function is to facilitate the élite’s global operations”.

    That’s the heart of the real problem, not Australia’s people, its youth, its pensioners, its immigrants, its pollies or its coalitions. Everyone is being screwed.

    • 0
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      Davos men have a big problem. The need the engine room of society to increase their wealth and living standards. Robots aren’t there yet so they need the workers. However the workers have become slaves to society through the shackles of debt. So as a worker you have to find away to unshackle yourself from this debt so that you can get yourself out of slavery. Unfortunately schools today takes immaginery children and mould them into factory workers so the majority of people know no other way. It is actually very scary giving up a good job to most people. So most people lives thier lives as slaves instead and then at the end of it all wonder what happened to all those years.

    • 0
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      Frightening to agree with anything you ever say Bronny…….but you are on the money.
      The world is class warfare in action. The rich take whatever they can get away with and it is not different in Australia at the current time. Add to that the age of robotics coming when workers will be ditched and demonised for being lazy people who do not want to work but just sponge off the the rich, who surprise surprise do have jobs available to them. No different to Australia today where people over 50 cannot get work other than part time shelf stackers.
      Your view of the world Outer Orbit ignores the reality. Sure people always want what they cannot have but it goes much much deeper than that. We are indeed engaged in class warfare which never ends because the mentally challenged amongst us vote for the media promoted party and the rich around the planet play games with us all to keep us in servitude by employing the financial system against us.

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