12 May 2011
Access to a number of Government allowances has been tightened and spending initiatives provided to move people from welfare into the workforce. Some of these include:
- Deferred introduction of paid paternity leave by 6 months to 1 January 2013.
- Freeze indexation of Family Tax Benefits supplements for 3 years.
- Freeze indexation of upper limits and thresholds of family payments for a further 2 years.
- Changes to the Family Tax Benefit A for dependent 16 to 19 year olds in full time secondary study (removing the need to choose between the FTB and Youth Allowance).
- Limit Family Tax Benefit Part A to children under 21.
- Increased audits of new disability support pension claims and the bringing forward of new and stricter assessment criteria.
- Allow disability support pensioners to work up to 30 hours per week.
- Introduce participation requirements for recipients on the disability pension who are under the age of 35 with some work capacity.
- Eligibility and parental means testing for Youth Allowance extended to 21 (currently 20). Newstart allowance closed to applicants under 22 years of age (currently 21).
- Compulsory participation plans for teenage parents (once child turns 6 months).
- Compulsory participation plans for jobless families.
- Incentives for single parents to join the workforce by adjusting the income test for government payments.
- Increased obligations on the long term unemployed.
- Transitional activities for school leavers who leave before completing year 12.
- Reduction in HECS scheme incentive to pay contribution up front from 20% to 10% from 1 January 2012.
- Bonus on voluntary payments to the ATO reduced from 10% to 5%.
2011/12 Budget (PDF)
The nip n tuck budget
Budget winners and losers
Reforms to tax compliance
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.