Time to read : 4 Minutes
Labor's very first budget is here, and as promised, it is good news for families.
🥡 The key takeaways are:
Childcare will be more affordable.
Paid parental leave will be expanded.
One million affordable homes.
Cheaper childcare? YES, please
The good news is that the bane of every working parent – childcare – will be more affordable.
The Government will be putting $4.7bn towards childcare to help working parents.
From July 2023, Childcare Subsidy rates will increase to 90% for families earning less than $530,000 combined.
Subsidies for additional children will be unaffected, staying at 95%.
Labor estimates this will allow an extra 37,000 Australians to return to the workforce.
Be aware: the subsidy is measured against your combined income so make sure that you are claiming the right amount to avoid any nasty surprises.
Parents will be able to have more time with their baby
The Government also announced that families will get more paid parental leave, extending the current 18 weeks to 22 weeks by 2026.
Right now, parents can access 18 weeks for the primary carer and two weeks for the secondary carer, paid at minimum wage.
By 2026 both parents can split the 22 weeks, allowing more flexibility for working families. For example, parent one could stay with the baby for the first 12 weeks and parent two could then take over for the remaining 10.
Mr Albanese said, "Our plan will mean more families take up this leave, share in that precious time — and share the caring responsibilities more equally."
Single parents will be able to take the full paid six months leave.
Be aware: It will be a slow roll out though, with two weeks additional leave on offer from July 2024 and then an increase by two weeks each year until 2026.
Properties in good locations and fair prices
As part of the new National Housing Accord, Labor says it will allocate $350m over five years to build affordable homes of Australians.
The Government, States and Territories will work together to fund 20,000 affordable properties that are "well-located."
30,000 new social housing dwellings will be built over the next five years.
A further 10,000 home buyers will have access to the Regional First Buyer Scheme, with the Government providing a 15% guarantee of the purchase price.
The Help to Buy Scheme will provide 10,000 Aussies a helping hand per year, by cutting the cost of buying a home by up to 40%.
The Government is also incentivising older Australians to downsize by extending the exemption of house proceeds from pension asset testing for one year.
Be aware: buying power has dropped across Australia with the rate rises.
The bottom line
Labor has delivered a budget that focuses predominately on families and housing.
With inflation sitting at 7.3% – the highest in 32 years – the Government is proceeding cautiously.
😐 It could be a good idea for us all to do the same.
Financial Disclaimer:
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.
