05 May 2015

The Budget: Families & Pensions

Prime Minister Tony Abbott calls the “Families Package” the centrepiece of the upcoming Federal Budget with child care facing “significant changes”.

The Government says it will provide a better deal but it is most likely to be a reformulation of how child care support applies.

If the Budget measures follow the Productivity Commission’s recent recommendations the Government will introduce a single means tested and activity based system.

Social Services Minister Scott Morrison also recently released details of an in-home nanny program to support shift workers.

The two-year trial will support home care for children of shift workers such as nurses and police.

Pensions

Like superannuation, the Government appears open to change that targets the asset rich.

Currently, couples with a family home and assets up to $1.15m qualify for a part pension.

The Australian Council of Social Services (ACOSS) has recommended a reduction in the assets test for home owners and an increase in the taper rate, effectively reducing the pension amount available once the threshold is passed.

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