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May 14, 2014, SYDNEY - Following last night’s Federal Budget announcement with major cuts expected to save the country billions of dollars and hit a black balance sheet in five years, one of Australia’s biggest comparison websites finder.com.au has uncovered hacks to help ease the impact.
Michelle Hutchison, Money Expert at finder.com.au said that most Australians can save significantly despite the budget cuts.
“There’s no denying that the Federal Budget will hit many Australians including households, pensioners, low and high income earners and students. However, it’s a timely reminder for all Australians to review their financial situation and follow our 2014 Budget Hacks to lessen the impact.
“There are ways that most Australians can save money or reduce the impact of the budget by following some of these simple hacks. You may be surprised by how much money you can actually save!” said Mrs Hutchison.
Australians with children will be hit with tighter eligibility requirements for the Family Tax Benefit (FTB) Part B, including reducing the threshold from $150,000 to $100,000, and cutting the benefit once the youngest child turns six. A new supplement will also be introduced for low-income single families, who will receive an extra $750 per year per child aged between six and 12.
The FTB Part A end-of-year supplement will be reduced from $726.35 to $600 and the maximum income threshold is now limited up to $94,316 before the base rate is reduced. FTB Part B end-of-year supplement will also be reduced from $354.05 to $300.
Hacks:
University students will pay more for their education under the new budget, with the government dropping its contribution towards course fees from 59 percent to an average of 20 percent from January 2016. Universities and TAFEs and colleges are also set to increase some fees, as they will be allowed to set their own fees. From July 1, 2016, university graduates will be obligated to start paying off their HELP debt when they earn over $50,638 and interest rates on their debt will rise
Hacks:
Those under 30 and unemployed will not be granted Newstart or Youth Allowance until six months after they finished school or began seeking employment. The government will provide six months of assistance while participating in Work for the Dole at 25 hours per week. Assistance will be cut after this 12-month period for the following six months, except for wage subsidies to employers. It continues as a six-monthly cycle. People under 25 won’t be eligible for Newstart, but can apply for Youth Allowance (Other).
Hacks:
Those born in or after 1965 won’t be eligible for the pension until aged 70 and the pension age will rise to 70 in 2035. Pension indexation will be changed to reflect inflation and from July 1, 2017, asset and income test thresholds will be frozen for three years. The Disability Support Pension (DSP) will also be impacted by these changes. The Commonwealth Seniors Health Card income threshold will be indexed from September 2014 and untaxed superannuation income will be included in the income test.
Hacks:
Some Australians will have more than one job in their lifetime, but multiple jobs means multiple super accounts. Consolidate your super accounts to make sure all of your super is in one place so you can earn maximum contributions.
Petrol prices will be hiked from August 1, 2014, with the government reintroducing a fuel excise indexation every six months
Hacks:
Those earning over $180,000 will be slugged a higher marginal tax rate by 2 percentage points.
Hacks:
From July 1, 2015, Australians who see a bulk-billing doctor will have to pay a $7 “patient contribution” fee, as well as out-of-hospital pathology and imaging services such as x-rays and MRI scans. A $5 fee will be introduced to prescriptions that are subsidised on the government’s Pharmaceutical Benefits Scheme from July 1, 2015. Concession cardholders will pay $0.80 more instead of the $5 fee.
Hacks:
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Disclaimer
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
About Finder
Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.
Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.
We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.
12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel