WHAT YOU GET

EXCLUSIVE: WANT TO KNOW HOW THE CHANGES TO TAX AND CHILDCARE AFFECT YOUR FAMILY? JOHN ROLFE AND PwC HAVE CRUNCHED THE NUMBERS TO DELIVER THE BOTTOM LINE FOR YOUR HOUSEHOLD.

THE biggest hip-pocket winners in the budget are set to be working parents with children aged five or under in care.

And millions of people will get a bonus of up to $1080 in their 2021-22 tax return.

There are no losers, but some households don’t get anything, including higher-earning singles, DINKS and families who have a stayat-home mum or dad and a breadwinner bringing in more than $126,000.

Analysis done inside the Canberra budget lock up by PwC for News Corp Australia shows many working parents stand to save $6000 or more through increased childcare subsidies — in 2022-23.

The Morrison government has said it will try to get the measures in place before then — and before the next election.

The proposal is to raise the childcare subsidy for families with two or more children aged five and under to as much as 95 per cent, from a current maximum of 85 per cent. Up to 250,000 families will benefit — some will get an extra 30 per cent of their fees covered for their second child.

Mums and dads juggling young ones and jobs that bring in a combined $190,000 will do even better, because the government wants to scrap the subsidy cap that currently kicks in at that amount.

PwC chief economist Jeremy Thorpe said “the support for young families with two children is a positive step to get more women into work and boost GDP”.

Treasurer Josh Frydenberg said the federal budget was “giving more parents, especially women, the choice to take on extra work”.

Treasury estimates that about 40,000 people will choose to work an additional day each week because of the childcare subsidy increases.

These plans, which cost $1.7 billion over five years and $670 million annually after that, are contingent on the government getting legislation passed by parliament.

Labor is also promising to increase childcare subsidies. The Opposition has said, if elected, it would cover as much as 90 per cent of costs as part of a package that would have broader applicability than the government’s plans.

The other budget move that puts money back in pockets is the extension of the Low and Middle Income Tax Offset, or LMITO.

It had been due to expire but instead has been maintained for 2021-22 only, at this stage.

It delivers $1080 to any worker or retiree earning between $48,000 and $90,000. A smaller amount of LMITO is payable above and below this range, just as it was last financial year, and for the current one.

A person earning $100,000 gets $780 back in their tax return; a worker on $40,000 will get $480.

Mr Thorpe said the government hoped the money would be recirculate to support Australian businesses.

Mr Frydenberg said workers were getting “more of their money in their pockets to spend across the economy, creating jobs”.

The government is predicting the budget will help to create more than 250,000 jobs by the end of 2022-23.