Last night federal treasurer Joe Hockey handed down the government’s 2014 budget. In one of the most controversial budgets in recent years the coalition has targeted pensioners, youth, family tax benefits, job seekers, and state funding. The carrots dangled include a medical research facility and revenue from a fuel levy being redirected into transport infrastructure.
While last night’s speech is still being dissected, below are some key changes announced in the budget:
- People under 30 will no longer be eligible for Newstart. After 6 months of unemployment they can apply for the lesser Youth Allowance and will be required to work for the dole.
- Introduction of a $7 co-payment for visits to a GP and also for some screening services – blood tests, x-ray – and an increase to the cost of pharmaceuticals. $5 of the payment is to go to medical research and $2 to the GP.
- Higher education to be deregulated. From 2016 Universities will no longer have a cap on fees and therefore can set costs for degrees themselves. The interest rate for HECS is to increase and the loan will need to be paid back sooner. Students studying a diploma or sub-degree can now apply for commonwealth funding.
- Introduction of an $11.6 billon infrastructure package that will focus on building new roads.
- A tax levy on incomes of more than $180,000. For 3 years those affected will pay an additional 2% for a ‘temporary budget repair levy.’
- Family Tax Benefit B see the eligibility limit for combined incomes reduced from $150,000 to $100,000 and only until their youngest child turns 6.
- The pension age is to be lifted to 70 by 2035. Aged pensions and disability support payments will be indexed to inflation rather than income.
- A Medical Research Future Fund has been established that hopes to reach $20 billion by 2020. This funding will come from revenue raised through the new medical co-payments.
The government has also introduced up to $10,000 in incentives for businesses to hire workers over 50 and will reduce education and hospital funding to the states by cutting indexation rates.
For a detailed breakdown of all proposed changes you can check out Joe Hockey Delivers Deep Pain for Little Gain on The Guardian
What are your thoughts on the budget? How will it affect you?
