Tuesday, 29 October 2013

If Labor and the Greens hold firm families across the Northern Rivers may get the Schoolkids Bonus again next January - and perhaps retain other benefits

The bad news......

On 24 October 2013, the Government released an exposure draft of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 and explanatory memorandum for public consideration.
The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 removes the Minerals Resource Rent Tax with effect from 1 July 2014. The Bill also discontinues or re-phases the measures that were intended to be funded by the MRRT. The Bill includes the:
·         repeal of loss carry back;
·         reduction in the small business instant asset write off threshold;
·         repeal of accelerated depreciation for motor vehicles;
·         repeal of the geothermal exploration provisions;
·         re-phasing of the change in rate of the superannuation guarantee charge percentage;
·         repeal of the low income superannuation contribution;
·         repeal of the income support bonus; and
·         repeal of the schoolkids bonus.

Explanatory Memorandum
Exposure Draft

The Abbott Government expects to save $17 billion by repealing these eight measures.

What this means in money/tax concessions lost to ordinary families on the Northern Rivers.

      * How much of the legislated Superannuation Guarantee increase employed persons won’t be getting between 2016 to 2020 once this repeal bill is passed:

      How much those earning under $37,000 per annum will lose from their superannuation each year when the Low income Superannuation Contribution is extinguished once the repeal bill is passed:

$500 per annum

      How much eligible individuals will lose with the abolition of the Income Support Bonus under the repeal bill:

$211.60 for a single person per annum
$176.40 per annum per person in a couple.*

*Eligible members of a couple separated by illness, or couples where a partner is in
respite care or in gaol, receive the single rate of $105.80 (or $211.60 per
annum per person).

      How much each eligible school child will lose when the Schoolkids Bonus is repealed under this bill:

Primary school child $410 per year
High school child $820 per year

The hopeful news.....

News.com.au  24 October 2013:

Despite Tony Abbott's vow to axe Julia Gillard's Schoolkids Bonus, the Government yesterday revealed that couldn't happen unless the Minerals Resource Rent Tax (MRRT) is repealed.
About 1.3 million families receiving Family Tax Benefit A are due to get the biannual payment of $410 per high school child and $205 per primary school child in January.
While the Prime Minister said scrapping the assistance was a tough call, the Government maintains the MRRT is not earning enough to pay its linked spending promises.
The contentious laws raised far less revenue than Labor predicted and Treasurer Joe Hockey said abolishing them could save the Budget more than $13 billion in the next four years as he released draft repeal laws.
But Labor indicated it's leaning towards joining the Greens to block the repeal in the Senate.
While the MRRT laws stand, so does the school payment, Income Support Bonus for welfare recipients, business tax concessions and a boost to the superannuation of 3.6 million low income earners.
Mr Hockey called on Labor to respect the Coalition's mandate to dismantle the MRRT and associated spending.....

It is time to phone Federal Labor MPs on this list and Labor and Greens Senators on this list and urge them to reject the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 in its entirety in order to preserve all eight of the provisions the Abbott Government seeks to abolish, in particular those existing superannuation and education provisions.

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