The Budget 2011 - CareforKids.com.au®

The Budget 2011
How does it affect you?

Despite the ever increasing child care fees and cost of living/interest rates and the consumer price index, the 2011 Budget didn't move with the times, and the Treasurer extended the freeze in the indexation of income limits on family payments including Family Tax Benefits A and B, the Baby Bonus and Paid Parental Leave until 2014.

The introduction of paid paternity leave has also been deferred from July 2012 to January 2013.

For FTB B, the primary income limit will remain at $150,000 rather than increasing in line with the consumer price index. The same applies for the Dependent Spouse Tax Offset before it is phased out.

For the Baby Bonus, the limit will remain un-indexed at $75,000 family income for the six months after the birth or adoption of a child, and for Paid Parental Leave the income limit will be frozen at $150,000 for the primary carer.

While the $150K means test was not applied to the Child Care Rebate, there will be fewer families eligible for Child Care Benefit and therefore for the Rebate.

Wayne Swan will also progressively phase out the Dependent Spouse Tax Offset, a $2200 concession received by taxpayers earning less than $150,000 a year with a dependent spouse and no children.
Those families with children aged 16-19 years who are in education or training will see some benefit with Family Tax Benefit A payments to households of up to $4208 a year.

Young parents will also see a benefit with 22-year-olds becoming eligible for the benefits from next January, lowering the age limit from 24.