How the Federal Budget will affect you

We crunch the numbers from the lock-up

THE budget’s winners are working parents with toddlers, courtesy of the big boost to childcare rebates from next year.

People on the top tax bracket are also better off in the shortterm because the Treasurer has allowed the 2% budget repair levy to lapse from July.

The losers are lower and middle income households with school-age kids because their family benefits are wound back.

Here you can use independent analysis by PwC economist and former Treasury boffin Jeremy Thorpe to work out how the budget affects you. First, find the household type closest to yours then pick the nearest total income.

The tables cover changes to family tax benefit part A and B payments, increasing help with childcare fees and dropping the repair levy.

The dot points explain the numbers, as well as some other key moves we couldn’t model but are likely to hit a household like yours.

The figures are annual comparisons between a nochange scenario and the net impact of the main hippocket measures. They show how different households are affected in each financial year compared to now.

The numbers here do not include the effect of increasing the Medicare Levy by 0.5%, because we’ve only modelled the next two financial years.

The proposed increase in the Medicare Levy happens after that. And it may not get through the Senate.

If you’re missing from this list – use our online budget calculator to find out if you’re a winner or loser.

SOLE PARENT

FIGURES BASED ON HAVING ONE CHILD, AGE NINE

Family tax benefits part A and B will be frozen at present levels until 2019, instead of going up with inflation.

The resulting FTB-A hit is up to $82 from July 1, 2017 and $188 a year after. For Part B it’s as much as $48 in 2017-18 and $109 the following year.

Also, for “high income” families on $94,000 to $125,000, FTB-A will fall from July 1, 2018. Those under this bracket aren’t affected; those over don’t get FTB-A now.

If you have a toddler in childcare, you will receive a much bigger rebate from July 2018. That’s not in the numbers above. It could dwarf the cuts.

For individuals on $180,000plus, the tax rate drops back 2c in the dollar from July this year when the “temporary budget repair levy” ends. That’s worth $200 for every $10,000 of extra income. But from July 1, 2019 for every $10,000 of earnings you’ll pay an extra $50 in the Medicare Levy.

SINGLE-INCOME COUPLE WITH YOUNG KIDS

AGED ONE AND THREE Family tax benefits part A

and B will be held at current rates for two years, instead of rising with CPI. It means you lose an FTB-A increase of as much as $165 from July 1 and $377 the year after. For Part B, it’s a hit of $66 a year in 201718 and $151 the following year.

Also, for “high income” families on $94,000 to $125,000, FTB-A will fall from July 1, 2018. Those under this bracket aren’t affected; those over don’t get FTB-A now.

From July 1, 2019 for every $10,000 of income you’ll pay an extra $50 in the Medicare Levy. Those households on $80,000-plus will no longer get the FTB-A supplement, worth up to $726.35 a child.

SINGLE-INCOME COUPLE WITH TEENS

AGED 13 AND 15

Family tax benefits part A and B will be frozen at present levels until 2019, instead of going up with inflation.

The FTB-A hit is as much as $208 from July 1 and $475 the following year. For Part B, up to $48 less a year will be received in 2017-18 than it would have been and $109 the year after.

Also, for “high income” families on $94,000 to $125,000, FTB-A will fall from July 1, 2018. Those under this bracket aren’t affected; those over don’t get FTB-A now.

Individuals earning more than $180,000 a year will no longer have to pay the 2% “temporary budget repair levy”, which gives back $200 for every additional $10,000 in income.

From July 1, 2019 for every $10,000 of income you’ll be slugged $50 more on Medicare.

Households bringing in over $80,000 will no longer receive the FTB-A supplement, worth up to $726.35 per child.

DOUBLE-INCOME COUPLE (67/33) WITH YOUNG KIDS

AGED ONE AND THREE

The Family Tax Benefit Part A payment is being held at the current rate until 2019, instead of rising with inflation.

That costs you up to $165 from July 1 and $377 the following financial year compared to what you would have received.

For “high income” families on $94,000 to $125,000, FTB-A will fall from July 1, 2018. Those under this bracket aren’t affected; those over don’t get FTB-A now.

From July 2018 you should get a big increase in the childcare rebate.

If you’re on $180,000-plus, the tax rate drops back 2c in the dollar from July next year when the “temporary budget repair levy” ends. That’s worth $200 for every $10,000 of extra income.

From July 1, 2019 for every $10,000 of income you’ll pay an extra $50 in the Medicare Levy. Households earning over $80,000 will no longer receive the FTB-A supplement, worth up to $726.35 a child.

DOUBLE-INCOME COUPLE (67/33) WITH TEENS

AGED 13 AND 15

Family Tax Benefit Part A payment is being frozen at current rates until 2019 instead of going up by CPI.

The FTB-A increase forgone is as much as $208 from July 1 and $475 the following financial year.

For “high income” families on $94,000 to $125,000, FTB-A will fall from July 1, 2018. Those under this bracket aren’t affected; those over don’t get FTB-A now.

Individuals earning more than $180,000 a year will no longer have to pay the 2% “temporary budget repair levy”, which gives back $200 for every additional $10,000 in income.

From July 1, 2019 for every $10,000 of earnings you’ll pay an extra $50 in the Medicare Levy. Households earning over $80,000 will no longer receive the FTB-A supplement, worth up to $726.35 per child.

DINKS - 50/50 INCOME SPLIT

Trying to buy your first home? You will be able to build a deposit more quickly by salary-sacrificing into your super account at lower tax rates. You can each accumulate up to $30,000.

Those carrying existing university degree debts will have to start paying back when they hit $42,000 a year.

From July 1, 2019 you’ll pay an extra $50 in the Medicare Levy for every $10,000 you each earn.

That’s not in the figures above, which cover 2017-18 and 2018-19.

From July this year, individuals earning more than $180,000 a year will no longer have to pay the 2% “temporary budget repair levy”, which gives back $200 for every additional $10,000 of income.

If you’re planning to start a family, childcare fee rebates will increase by thousands annually from July 1, 2018.