Families on incomes of $150,000 face losing thousands of dollars worth of government benefits if they earn just a dollar more…
Families earning more than $75,000 in the first six months of their baby’s life — equivalent to an annual income of $150,000 — become ineligible for the $5294 baby bonus.
PAID PARENTAL LEAVE
Families where the primary carer for a newborn earns more than $150,000 in the financial year prior to their baby’s birth become ineligible for the government’s paid parental leave scheme, paid at $570 a week for a maximum of 18 weeks, for a maximum amount of $10,260. This income is taxed. Families who take this leave are ineligible for the baby bonus.
FAMILY TAX BENEFIT PART B
This is paid to single parents and families with only one main income earner to help with the cost of raising children. The maximum payment is $3909 a year for every child aged under 5 and $2832 a year for every child aged 5 to 15 (or 16 to 18 years if in full-time study). Once a primary earner earns more than $150,000 a year, families are no longer eligible.
PRIVATE HEALTH INSURANCE
The government is pushing ahead with a plan to phase down the 30 per cent private health insurance rebate for all individuals earning more than $80,000 and families earning over $160,000. If a family paying $3000 a year for private health insurance (including the 30 per cent rebate) were to suddenly earn more than $160,000 they would only be eligible for a 20 per cent rebate, meaning they would pay an extra $430 a year out of pocket.
A person earning $150,000 in the coming financial year will already pay about $750 a year under the government’s one-off flood levy. For every $1000 an individual earns above $150,000 they would pay an extra $10.
The government has indicated households earning more than $150,000 will not be compensated for the rising cost of electricity, gas and food under its proposed carbon tax. Treasury estimates that at a carbon price of $20 a tonne, households will pay an extra $400 a year on these items.