Newsletter
Federal Budget Newsletter
CHILD CARE, PENSION AND WELFARE MEASURES
Major childcare payments revamp
The Government announced it will establish a new and simpler mainstream Child Care Subsidy from 1 July 2017. Key points include the following:
- Abolition of the current Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance programmes.
- A single means tested Child Care Subsidy for all families, subject to a new activity test, for up to 100 hours of subsidised care per child per fortnight.
Child care subsidies will remain linked to immunisation requirements strengthened, from 1 January 2016, under the Government's “no jab, no pay” policy.
Paid parental leave – no double-dipping
The Treasurer said the Government will stop people from claiming parental leave payments from both the Government and their employers – he said this was effectively double dipping. This would apply from 1 July 2016.
Age Pension assets test: threshold increased, taper rate tightened
The Government confirmed that the Age Pension assets test threshold for a single homeowner will be increased to $250,000 (up from $202,000) and $375,000 for a homeowner couple (up from $286,500) from January 2017. The assets test threshold (or assets free area) for non-homeowners will be increased to $450,000 (single) and $575,000 (couple).
The assets test taper rate at which the Age Pension begins to phase out will be increased from $1.50 of pension per fortnight to $3.00 of pension for each $1,000 of assets over the relevant assets test threshold. The measures will commence from 1 January 2017.
The Government will also be dropping its 2014 Budget proposal to index the Age Pension to CPI.