HOST:
We've heard a lot about the carbon tax. We've heard a lot of pros and cons in regards to this State and whether they are being ripped off but the money will start to flow into certain people's bank accounts. You may like to grab a pen and a piece of paper to write down some key dates because we've got David Bradbury, he's the Federal Assistant Treasurer on the line. Good morning David, how are you going?
DAVID BRADBURY:
Good morning Steve, I'm well how are you?
HOST:
Very well indeed. Without getting into too much detail, we'd like to know exactly what people are going to get as the consequences of the changes to taxation and rebates etc. First up, the tax free threshold from July 1 will increase from $6,000 to $18,000, that's correct?
BRADBURY:
That's right. The effect of that will be up to about one million Australians will no longer be required to submit a tax return. So apart from reducing the tax that those people will have to pay it actually alleviates the need for them to go through that burdensome task of having to put a tax return in every year. So it's quite a big structural reform as well as providing tax relief to people and a bit more money in people's pockets.
HOST:
Speaking of money, money will start arriving in various bank accounts over the course of the next month or so. Can you tell us what kind of money is going to be given to what kind of people?
BRADBURY:
That's right. Look it depends on your family circumstances but let's just start with pensioners and self-funded retirees. So if you're on the pension, whether it be the full pension or the part pension or you're a self-funded retiree that receives a Commonwealth Seniors Health Card, then you will be receiving not only an increase in payments over time for pensioners, but you'll also be receiving an advance payment which will start to flow from the start of May, between May and June and people will receive that advance payment.
HOST:
How much is that David?
BRADBURY:
If you're a single, it will be $250 but if you're part of a couple then for each of the members in the couple it'll be $190 each.
HOST:
Okay, what is that for? That's to help with the increased cost of the carbon tax, is that what it's for?
BRADBURY:
In part, but it's also to give people the ability to maybe go out and make a one-off purchase or contribute to a one-off purchase that might help them manage their own energy needs at home.
HOST:
So that is the Clean Energy Advance is it?
BRADBURY:
That's right.
HOST:
What about families mate? What can they expect? Those that are getting, say, Family Tax Benefit B.
BRADBURY:
In terms of families, FTBA is for those often where you have two income earners or that's for the family, for FTBB is often where you have one income earner that is not actually out there in the workforce. Now both of these categories will get some benefit, and they will be receiving, for example a Clean Energy Advance of around $109. It depends a bit on the family income and the number of children you've got, but generally speaking there will be an advance payment and an increase in the overall funds that you receive over the course of the year.
HOST:
So it's my understanding that if you're earning above $80,000 there is really nothing there for you in the short run. Is that correct?
BRADBURY:
Well no that's not entirely true. In terms of the tax cuts, the tax cuts are targeted towards individuals on less than $80,000 that's true, but when it comes to the family tax benefit, there will be families that are earning considerably more than $80,000 depending on the number of children they have and the age of those children. There are some people for example on household incomes of $150,000 that will still receive some assistance. But the assistance is fairly broadly based, 9 out of every 10 households will receive some assistance. So there is only a small proportion of people that won't be receiving that assistance and they are generally those that fit into the category of being, I guess, well-off enough to look after themselves.
HOST:
So David if people are preparing a budget maybe on this holiday Easter Monday going forward for the next couple of months, where can they get further info on this?
BRADBURY:
If they go to the clean energy website, if they go on there, there is actually a household estimator. So if they just go on to Google and search for 'household estimator clean energy' then that will take them to the appropriate page where they can type in their own personal circumstances and they will get an outcome there.
HOST:
Alright. Now I believe you're from Greater Western Sydney, is that right?
BRADBURY:
That's right, yeah.
HOST:
Are you a Greater Western Sydney supporter?
BRADBURY:
I'm principally a Rugby League supporter, but I've always said that I'd support the Greater Western Sydney team if they had a marbles team. I support anyone in Greater Western Sydney. We've got our work cut out for us; I think that's fair to say for the AFL Team.
HOST:
Well you're playing the West Coast team from over here next week so good luck with that, they're on top of the ladder. David thanks for your time this morning, I really appreciate it.
BRADBURY:
Thanks very much. Good to talk to you.