How the 2015 Federal Budget Affects Low Income Earners

One of the big questions we have been receiving from our readers is how does the Budget affect low income earners and those collecting Centrelink benefits. This budget is actually fairly neutral or beneficial for many low income earners outside of large families unfortunately.

Below is a quick summary of the winners and losers for families, pensioners and welfare or Centrelink beneficiaries.

 
Pensioners and Welfare/Centrelink
Winners

Youth Unemployment – Australian youth who are unemployed will have to only wait 4 weeks instead of the proposed 6 months to receive the dole.

Young Australians – Aussie’s that are 22 to 24 will be able to get higher Newstart payments instead of the Youth Allowance.

Jobseekers over the age of 50 – Employers are getting extra incentive to hire and retain older workers.

Widows – A shorten review period over the next 4 years

Losers

Wealthy Pensioners – There will be an adjustment to the threshold of assets test. This is expected to affect 81,000 pensioners who will no longer be able to claim a part pension.

Welfare defrauders – Upgrades to the dated welfare system have been approved.

Families
Winners

Adoptive parents – A huge injection of funds to assist in the adopting of overseas children

Low income families – Over $300 million in funding over 4 years to help disadvantaged kids obtain childcare

Shift-workers & nannies – Over $240 million in funding for a 2 year nanny subsidy trial

Losers

Families that don’t vaccinate – Families that don’t vaccinate their children will lose family and childcare benefits

New moms – The government will eliminate paid parental leave “double dipping”. Stay-at-home parents whose earn more than $65,000 will lose childcare subsidies and expectant moms will no longer be able to claim both the government’s paid parental leave scheme and an employer paid parental leave scheme.

Large families – Unfortunately, large families will no longer be able to access Family Tax Benefit A

For an extensive look at all this year’s budget winner and loser visit here