What today's Federal Budget means for Aussie seniors
Australians on low and middle-incomes will get tax cuts worth up to $10.50 a week in tonight's Federal Budget, which will also include a major shake-up of the aged-care sector, it has emerged.
The ABC reports the tax relief will be given by an increase to the Low Income Tax Offset (LITO) which will more than double to $1,000. At the moment, the LITO is worth $445 a year for people earning below $37,000 annually. It gradually reduces and cuts out when people earn $66,667 a year. It will be extended to people on incomes of about $90,000 a year but the rebate will still gradually decrease the more a person earns.
That will mean an extra $10.50 a week for people on the maximum benefit, at a cost of around $4-5 billion annually.
Treasurer Scott Morrison was forced to defend himself against accusations the cuts will only be sufficient for a “burger and milkshake”.
Mr Morrison told Nine News on Sunday: “I’m not going to pretend that these are going to be mammoth tax cuts, or anything like that, that wouldn’t be responsible. They will be what is affordable, they will be real and they will be within what the Budget can afford.”
While most of the details have of the budget have been kept under wraps, it is understood that Mr Morrison has prepared a multibillion-dollar aged-care and retirees package – including 20,000 extra home-care places.
More than 100,000 older Australians are currently on the waiting list for home-care places, which will help them stay in their own home rather than move to aged care facilities.
The Pension Loans Scheme will also expand to allow self-funded retirees to increase their income by borrowing against the value of their home.
More money has also been earmarked to train older Australians to stay in the workforce longer with the expansion of the Work Bonus program, which allows seniors to earn $250 a fortnight without affecting their pension.