What's new and proposed from July 2018 - Financial Planning 06 Jun 2018

Blog / Financial Planning


NO NEW GRANTS OF WIDOW ALLOWANCE – LEGISLATED

From 1 July 2018, there will be no new grants of Widow Allowance. This measure was originally proposed to commence from 1 January 2018.

Widow Allowance is available to women:

  • born on or before 1 July 1955, and
  • widowed, divorced or separated since turning 40, and
  • little or no recent workforce experience.

While there are no new grants of Widow Allowance from 1 July 2018, those who would otherwise be eligible and who claim Newstart Allowance will be exempted from the activity test.

NEW CHILD CARE SUBSIDY REPLACES CHILD CARE BENEFIT AND REBATE – LEGISLATED

From 2 July 2018, a new single Child Care Subsidy payment will replace the Child Care Benefit and Child Care Rebate.

Eligibility for the subsidy will be determined by an income test and an activity test.

The level of subsidy is based on family income and up to 85% of fees paid, to the hourly fee cap applicable. Entitlement cuts out where family income exceeds $350,000.
 
Combined family income  Subsidy per cent of actual
fee charged (up to hourly cap)
Up to $66,958 85%
More than $66,958 to below $171,985             85% - [0.01 x (family income - $66,958)]
$171,958 to below $251,248 50%
$251,248 to below $341,248 50% - [0.01 x (family income - $251,248)]
$341,248 to below $351,248 20%
$351,248 or more  0%
  
For families earning more than $186,958, an annual subsidy cap of $10,190 per child will apply.



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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us .

 


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