Budget 2014 – Will I lose Family Tax Benefit Part B?

Single Parent Budget 2014 News

Family Tax Benefit B – how much could I lose?

SingleMum.com.au | 14 May 2014
Low-income single parents of children aged 6-18yrs impacted



budget

2014-2015 Budget to hit single parents

of 6 to 18yo children hard…

Family Tax Benefit Part B cuts – First, the good new



The new Budget has struck fear into the hearts of many single parents, with huge financial hits – however we have unearthed some small good news for you – or for some single parents, at least.

If – and that is still a big “if” – the new Federal Budget be passed through the Senate, a large number of single parent families will no longer be eligible for the Family Tax Benefit Part B (The Family Tax Benefit Part A has been left relatively untouched, apart from the freezing of its value for two years).

But here’s the good news – should the Budget go ahead, the following Budget statement directly relates to many of those single parent families affected, and at least delays the financial loss of the FTB Part B. From the Federal Government Budget website*:

School Kids Bonus

The fight to save the School Kids Bonus has been lost – but the popular payment is not dead yet.

Joe Hockey’s law to phase out the Schoolkids Bonus (SKB) has passed through parliament but SKB payments will continue in 2015 and 2016, with some new restrictions.

Eligible parents will get two SKB instalments of $211 per primary school aged child ($422 in total). Parents of high school aged children will get two SKB instalments of $421 per child ($842 in total). School Kids Bonus instalments are paid in January and July.

To be eligible for School Kids Bonus in 2015 and 2016, parents must be receiving Family Tax Benefit Part A and have a total family taxable income of $100,000 or less per year.

“The restriction of eligibility for Family Tax Benefit (FTB) Part B to families with children aged under six commences on

1 July 2015 but is grandfathered for two years for existing recipients

and will therefore be fully implemented from 2017-18.”

So, now for the bad news…

Let’s do the new Budget maths for you….

The below figures are based upon a low-income single parent (or low-income couple parent family) currently entitled to receive the full amount of Family Tax Benefit Part B for 1 x child.

To get these amounts, we have sourced the base figures from official government websites (listed below), and have calculated all estimates according to those base amounts. All amounts are approximate estimates only, and assume that the 2014-15 Federal Budget is passed through the Senate.

What am I getting right now?

Single parents now eligible and receiving the full Family Tax Benefit Part B amount for 1 x child:

Family Tax Benefit Part B maximum rate –
Per fortnight: $102.20 Per year: $3,018.55**

What will I get if the Budget is passed?

Single parents with 1 x child aged between 6-12yrs

No changes to your eligibility to Family Tax Benefit Part A (providing your income is below $94,316).
you are no longer eligible for Family Tax Benefit Part B.
You are are eligible for a new supplement 1 x child 6-12yrs – $750 a year providing that:
– you are receiving the maximum rate of FTB Part A

Note – If you are receiving over $1,478.25 in child support or spousal maintenance per year you may no longer be receiving the maximum rate of FTB Part A, and therefore not be eligible for the $750 supplement – you can read more at theGovernment FTB Part A webpage here

This approximately breaks down to:

$28.84 per fortnight
$750 per year

Post-Budget difference:

$73.36 per fortnight worse-off
$2268 per year worse-off

Single parents with child aged between 13-18yrs

No changes to your eligibility to Family Tax Benefit Part A (providing your income is below $94,316).
You are no longer eligible for Family Tax Benefit Part B.
You are not eligible for the new supplement
$0 per fortnight
$0 per year

Post Budget difference:

$102.20 per fortnight worse-off
$3018.55 per year worse-off

Single parents with child aged newborn to 6yrs

No changes to your eligibility to Family Tax Benefit Part A (providing your income is below $94,316).
No changes to your eligibility to Family Tax Benefit Part B (providing your income is below $100,000).

Both Family Tax Benefit Parts A and B will be frozen (will not be increased in-line with wages or inflation) for 2 years

End-of-year Supplements

Both Family Tax Benefit Parts A and B end of year supplements will be reduced and frozen (From 1 July 2015 FTB B end of year supplement reduces to $300 – FTB A end of year supplement reduces to $600 and neither will be increased).

The 2014-2015 Budget does not yet apply, and is required to be passed in the Senate to become law.

You can read the SingleMum.com.au Single Parent Guide to the 2014-15 Budget here

SingleMum.com.au

Resources

*Source: Budget.gov.au

**Source: Humanservices.com.au


Have your say on this story – do you use any of these bank accounts for your child – or a different one? Make a comment below!


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