A range of new Australian Government initiatives which will provide cost of living relief for millions of Australians are due to commence this Sunday.
Member for Batman, Martin Ferguson AM MP, has welcomed new cost of living support which will start to hit the pockets and bank accounts of local residents from 1 July 2012
“Australia has one of the strongest economies in the world. Unemployment is low and we are in the midst of a huge mining boom", said Mr Ferguson.
“From 1 July the Federal Labor Government is using our strong economy to spread the benefits of the boom to everyday people.
“More money will be put in the pockets of local residents thanks to the Government delivering new relief.”
1 July changes – what does it mean for Batman Electorate?
1. Tax Cuts
• The Federal Government is more than tripling the tax free threshold from $6,000 to $18,200, the largest increase in the history of the tax-free threshold.
• More than 48,000 local low- and middle-income earners will receive a tax cut, and more than 39,000 locals will receive a tax cut of more than $300.
• Low income earners will receive the largest tax cuts. For example, a mother with some part time work earning will get a tax cut of $600 if they earn $20,000 and $503 if they earn $25,000.
2. Schoolkids Bonus
• A new Schoolkids Bonus cash payment has already been automatically deposited into the bank accounts of 5,600 local families with kids in school to help make ends meet. Replacing the current Education Tax Refund, parents will now receive $410 for each child in primary school and $820 for each child in high school each year. The new Bonus starts in January 2013,and will be paid before the start of Term 1 and Term 3.
3. Lump Sum Supplementary Allowance
• As part of the Benefits of the Boom package in this year’ Budget, 9,700 local residents will receive $210 a year for singles or $350 a year for couples receiving benefits such as Newstart, Youth Allowance, Austudy and Parenting Payment – from 20 March 2013.
4. Clean Energy Supplements
• A 1.7 per cent increase in pensions, allowances and family payments, worth up to $338 per year for single pensioners and self-funded retirees, up to $510 per year for pensioner and self-funded retiree couples, up to $110 per child for a family that receives Family Tax Benefit Part A.
• Paid fortnightly from March or July 2013 (increases in family payments start on 1 July 2012).
• Advance payments have already been paid for families, pensioners, students and self-funded retirees.
5. Low Income Supplement
• 1 July will also see $300 per year provided to low income households who do not receive sufficient levels of assistance through tax cuts or other carbon compensation payments.
6. Low Income Super Relief
• A payment of up to $500 a year into the superannuation accounts of low income workers means no effective tax will be paid on compulsory super contributions for workers earning up to $37,000 a year.
7. Essential Medical Equipment Payment
• $140 per year for people who experience additional energy costs from the use of essential medical equipment.
8. Banking Reforms
• Credit card providers will be required to direct repayments to the most expensive part of a customer’s credit card debt first. Australians with balances attracting more than one level of interest rate will save about $170 a year.
• Bank account customers will be able to ‘tick and flick’ to switch banks, with regular direct debits automatically switched across to the new institution. More info at www.bankingreforms.gov.au.
Media contact: Cathryn Tilmouth - 0401 222 941