We’re leaving the political speculation and nit-picking to others. What actual changes will you notice in your household budget as a result of this year’s Federal Budget?
Picture by Marika Angelina via Gizmodo Shooting Challenge
There are a bunch of changes in the budget announced last night, with many of them directed at specific groups (families with children at school being the most visible target). However, the biggest structural change is the ongoing push to change the tax-free threshold from $6,000 to $18,200, which will eliminate the need for many people to submit a tax return if they’re on a low wage.
While individual circumstances will vary, the budget papers also have a crack at working out how much disposable income once all the various benefits (including carbon tax relief, the new schoolkids bonus, changes to Family Tax Benefit and everything else) are factored in. The table below lists ‘typical’ outcomes for the 2012-2013 income year, as a percentage of the average wage (more specifically average weekly ordinary time earnings which, for the record, were $1333.40 as of November last year):
The table is a bit sneaky. By focusing on the change from 2007-2008 to 2012-2013, it ignores that the rise in percentage terms from this year could be much smaller. But it does give you an idea of how your circumstances might alter in the next financial year.