Spreading the benefits of the boom

Growth and prosperity

The Minerals Resource Rent Tax (MRRT) is a historic economic reform which means the benefits of the boom can be invested in Australia's future.

The Government was going to use the proceeds of the MRRT to cut company tax rates but we are not able to secure the necessary Parliamentary support. We will now adopt a different approach to spread the benefits of the boom to families and businesses.

The Spreading the Benefits of the Boom package will deliver increases in income to families with children, young people and the unemployed.

This package, combined with the new Schoolkids Bonus, will provide around

$5 billion in support to low and middle income households which will in turn support consumption and spending in businesses, including small businesses, across the country.

Increasing Family Tax Benefit Part A

From 1 July 2013 Family Tax Benefit Part A (FTB‑A) will increase for all eligible families.

For those on the maximum rate, the Government will deliver an increase of $300 per year for families with one child and an increase of $600 for families with two or more children. For families receiving the base rate, the increase will be $100 for families with one child and $200 for families with two or more children.

Around 1.1 million families will receive an increase of at least $300 per year as a result of the increase to the maximum rate of FTB‑A. Of these, around 690,000 families with two or more children will receive $600 per year.

As a result of the increase to the base rate of FTB‑A, around 460,000 families will receive at least an extra $100, of which around 250,000 will receive $200 per year.

These measures build on the Government's strong record of support for families, including increasing rates of FTB‑A for each child aged 16–19 in secondary school by up to $4,208 from 1 January this year.