More support for families and carers

The Government has demonstrated an unparalleled commitment to supporting Australian families.

All families benefited from The New Tax System changes in 2000, which increased family assistance payments, lowered family assistance withdrawal rates and cut personal income taxes.

The 2004-05 Budget built on these changes through the introduction of the $19 billion More Help for Families package.

And since the last budget the Government has:

• increased the maximum rate of Family Tax Benefit Part B ($2 billion over five years from 2004-05)

• introduced a 30 per cent Child Care Tax Rebate (around $1 billion over five years from 2004-05).

This budget continues this commitment.

In addition to the tax cuts, the level of family income allowed before Family Tax Benefit Part A starts to be withdrawn will increase to $37,500 a year from 1 July 2006.

This will assist over 400,000 families, providing increased assistance of up to $12.55 a week.

Details of the impact on real disposable incomes through the Government’s ongoing commitment to families since 1996 are at Appendices A and B.

Carer bonus

The Government will provide $317 million for a carer bonus to be paid to eligible carers in June 2005 in recognition of their role of caring for a person with a disability.

• Recipients of Carer Payment will receive a $1,000 bonus payment.
• Recipients of Carer Allowance will receive a $600 bonus payment for each eligible care receiver.

The bonus will be tax free and not treated as income when calculating social security payments.