2012 Budget: How Will Your Income Change?

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.

2012 Budget


Comments

    "However, the biggest structural change is the ongoing push to change the tax-free threshold from $6,000 to $18,2000"

    I'm really hoping that is a case of the comma being in the wrong place, and not just an extra zero...

      @Bigmac - it's the 'Macbook Air Effect' where you accidentally add an extra digit to the most critical number in the article, and that's all the comments focus on.

    Once again, there is a gap in any relief for single income families earning over 80k. They are actually losing "disposable income" by not keeping up with CPI

      Under what circumstances is 80k a year not enough? I'm a Chef being in the industry for 9 years and I'm on 48k a year... no overtime is paid (days in leu instead). I have two kids, a very nice house and all the gagetry I could want, large 3D tv, two nice cars, multiple computers and consoles, toys for the kids.... we even find money for a trip to the theme parks every year.

      So... what's happened that 80k a year is not enough? I'd LOVE 80k a year, I work harder than most that earn said amount, more hours in horrible heat, its the nature of the industry... but I'm fine on my measly 48k.

        I know this is a bit personal, but does your wife work?

        how on earth you managed to do that?
        I'm on 41K and struggling to pay my rent

        we're talking about gross income right?

          'very nice house' on $40k? you must live in the Simpson desert

          I think somebody may have missed the "single income" part of the discussion. Not sure who though.

        his a chef so he gets his food for free that in its self saves him 25k a year on food.

        People have different perceptions of what a "very nice house" is. Also, how much debt are you in? Some people want to retire before they turn 90

        Jay, how do you do it. My family in on $55k and while comfortable and happy, we have a fixer upper old house, 2 crap cars, old 2nd hand tv, cheap toys and clothes for 2 kids. Public school, no pay tv,, shop at Aldi, and very rarely eat out and definitely no big holiday every year. cheapest possible mobile/internet plans... Give us numbers please for your budget.

    Sorry Labor but I think you've done yer dash here. Unfortunately it will probably mean something similar to Qld where they have been decimated giving the incoming LNP a massive number of seats. This allows them to now do whatever the hell they like. The same will happen to the Federal Gov't and we will all end up living in a police state similar to what we had in Qld with the Joe Bjelke-Petersen led Govt. Bad news all the way down.

      Rob: It's not up to the government to increase your wages to keep up with CPI, it's up to your EMPLOYER.
      Timmahh: Are you Tony Abbott, because you seem to saying something is bag without giving any reason as to why.

      I'm so tired of hearing "I'm going to be paying more for everything!". It's the GST all over again. Stop the hand waving, sit down, and work it out.

      I'm going to be better off, but that doesn't mean I'm going to vote labor.

        Cammo, What Rob is talking about is bracket creep.

        A concept where wages continuously increase in line with cost living, but the tax brackets do not. So allthough your "real" wage has remained constant, you are moving into higher tax brackets and paying more tax.

        Calling me Tony Abbott is worse than just punching me in the face mate, I hate the bastard!
        What I'm saying is, if we lose too many Labor seats and it looks like we will, then F'ing Abbot will be able to do what ever he likes, including shutting down the NBN. We need to still have a strong Labor opposition. Unfortunately the buggers have stuffed up so badly they will probably lose most of their seats. Hence the Joe Bjelke-Petersen reference.

          You do realise that QLD has a unicameral legislature? A majority of 5 is just as good as a majority of 50 in Queensland. This notion of unlimited power because the majority is so large is a misnomer and people should stop perpetuating it.

            I just looked up "unicameral" and I'm still not sure how it helps when the opposition has been fundamentally decimated as Labor was in QLD. I'm pretty sure very few people have heard of it at all.

    They always make it sound like they are helping you out whilst simultaneously bending you over!

    I worked hard and made smart choices so I could give all my rewards to all those people who didn't work hard and made poor choices.

      All your rewards? You're paying a 100% marginal rate? I think you need a better accountant.

    Be an unemployed bum, have a dozen kids and you'll be looked after well...

    That is what I got from this budget

      i have seen the types walking around on Shopping centres on weekdays with six kids driving in 4wd's. these ppl earn more staying home than working.

    I am married with 2 kids , my husband (full time employed) and I work 2 days a week (at a workplace)and then look after my kids as well which is 24/7 (so I can see them grow up). I do not use Child care because I have a lovely family who do look after them when I am at work. And because I work, our family will probably not get any benefit from the budget even though we do get a little from Family tax B. But then in the future when my children are old enough I will be able to go back to work fulltime because I do have a job (then hopefully we will be better off)

    So true , my husband works his butt off for $60,000 and I know of families that have six kids , won't work and they get the same money every week as we do .. They have no loans and very little to pay out each week and can afford to enjoy life ... Makes me sick !!!!

    The incentive to work harder & strive to be more comfortable financially is being constantly eroded. We need to have better role models & higher aspirations.
    The idea of government handouts should be ingrained to children at school as a last resort. The victim attitude leads most to misery as i see it.

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