Sometimes no change can be a good thing. The Government has stated that it will not change the current income tax thresholds or pension and benefit fortnightly rates. Here are some of the other changes that will affect families and individuals.
The SchoolKids bonus – that offers up to $820 per child to cover education expenses – will be abolished. The bonus was funded by the mining tax.
One of the most controversial of the Government policies during the election campaign was the introduction of a paid parental leave scheme at replacement wage. Scheduled for 1 July 2015, the scheme provides mothers with 26 weeks of paid parental leave at their full replacement wage or the national minimum wage (whichever is greater) plus superannuation. The replacement salary is capped at $150,000.
Fathers will also be able to take two weeks paid parental leave (concurrently with mothers or separately) at their actual wage. Australia is currently one of only two countries with a paid parental leave scheme that doesn't base its payment on a woman's actual wage.
The intention is to fund the paid parental leave scheme with a 1.5% levy on companies with a taxable income above $5 million (the levy applies to the taxable income above $5m).
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Last updated October 2013. 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.