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Federal Budget 2013 - Families & Communities
Federal Budget 2013/14

Bye bye baby bonus
From 1 March 2014, the Baby Bonus will be replaced by an increase to Family Tax Benefit Part A (FTB Part A) payments.   The payment increases FTB Part A by $2,000, to be paid in the year following the birth or adoption of a first child or each child in multiple births, and $1,000 for second or subsequent children. The additional FTB Part A would be paid as an initial payment of $500, with the remainder to be paid in seven fortnightly instalments.

Parents who take up Paid Parental Leave (PPL) will not be eligible for the extra FTB Part A payment but should have greater access to PPL on the birth of subsequent babies.

Date of effect:   From 1 March 2014

Family & parental payments while overseas
The allowed period of temporary absence from Australia for accessing certain family and parental payments will change from three years to one year from 1 July 2014.  Affected payments include Family Tax Benefit Part A, Schoolkids Bonus and Paid Parental Leave.

Date of effect:   From 1 July 2014

Increase to Medicare levy low-income threshold for families
The Medicare levy low-income threshold for families will increase to $33,693 for 2012/2013 income year.  The additional amount of threshold for each dependent child or student will also increase to $3,094. The increase in these thresholds takes into account movements in the CPI.

Date of effect:    From 1 July 2012

Family tax benefits for 16 year olds
Eligibility for Family Tax Benefit Part A (FTB Part A) for children aged 16 years and over will change. FTB Part A will only be paid until the end of the calendar year a child completes school. This change will start from 1 January 2014. Individuals who no longer qualify for FTB Part A may be eligible to receive Youth Allowance, subject to the usual eligibility requirements.

Date of effect:    From 1 January 2014

Increase to family tax benefits scrapped
The Government will not proceed with the 2012-13 Budget measure Spreading the Benefits of the Boom - increasing Family Tax Benefit Part A.
  • Families receiving the maximum rate of FTB Part A with two or more children would have received an extra $600 a year, or an extra $300 a year if they have one child.
  • Families receiving the base rate of FTB Part A with two or more children would have received an extra $200 a year, or an extra $100 a year if they have one child.

More from the Federal Budget 2013

Click through to the pages below for details about how the Budget affects you.

Federal Budget 2013 - A Swan song?
Business
Individuals
Tax Measures
Superannuation
Key economic highlights

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Last updated May 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.

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Disclaimer

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.

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