Federal Budget 2012/13
The Treasurer is replacing the Education tax rebate with the Schoolkids Bonus and increasing the Family Benefit Part A for eligible families.
$2.1 billion over five years has been allocated for a new Schoolkids Bonus to provide support for the cost of a child's education. The bonus will replace the Education Tax Refund (ETR), which is currently available as a refundable tax offset. The Schoolkids Bonus will be made in two equal installments in January and July each year commencing January 2013. As a transitional arrangement, the ETR in 2011/2012 will be replaced by a one-off lump sum payment to eligible families in June 2012. Making these payments automatic will increase assistance to the many eligible families currently missing out on some or any ETR.
From January 2013, every eligible family with a child at school will be guaranteed $410 per annum for each primary school student and $820 per annum for each secondary school student. All eligible families will receive the full rate of payment and will no longer need to keep receipts as proof of expenses that have been incurred, or wait until their tax returns have been lodged.
Eligibility for the payment will be open to families with children enrolled and attending school who are in receipt of Family Tax Benefit Part A (FTB A) or other qualifying income support payments or allowances under a prescribed educational scheme that precludes the family from receiving FTB A.
Date of effect
Transitional payments from June 2012
Family Tax Benefit Part A will increase by $300 per annum for families with one child and $600 per annum for families with two or more children. For families receiving the base rate of FTB A, the increase will be $100 per annum for families with one child and $200 per annum for families with two or more children.
Date of effect
From 1 July 2013
Eligibility for Family Tax Benefit Part A will be limited to young people under 18 years of age or, where a young person remains in secondary school, the end of the calendar year in which they turn 19. Individuals who no longer qualify for FTB A may be eligible to receive Youth Allowance subject to usual eligibility requirements. This change seeks to focus payments in the family assistance system on families with children who are at school, while Youth Allowance will become the primary form of assistance to eligible young adults aged 18 and over.
Date of effect
1 January 2013
$1.1 billion over four years has been allocated for a new supplement for eligible income support recipients. The supplement will be an ongoing, non-taxable payment to recipients of NewStart Allowance, Sickness Allowance, Youth Allowance, Austudy, ABSTUDY, Special Benefit, Parenting Payment Single, Parenting Payment Partnered, Transitional Farm Family Payment and the Exceptional Circumstances Relief Payment. The new supplement will provide $210 per annum for eligible singles and $175 per annum for each member of an eligible couple.
The supplement will be paid in two installments, in March and September each year, with the first payment commencing on 20 March 2013.
$1bn in funding over four years has been allocated for the first stage of a National Disability insurance scheme subject to agreement to shared costs with State and Territory Governments.
The scheme is intended to deliver personalised care and support for up to 10,000 people with significant and permanent disability from 2013/2014 and expand to support up to 20,000 people from 2014/2015. Eligible individuals will be entitled to reasonable and necessary care and support that reflects their individual circumstances.
Click through to the pages below for details about how the Budget affects you.
For the greater good
Download the 2012/13 Budget Summary
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Last updated May 2012. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.