Wayne Swan Slashes Baby Bonus, Raises Insurance Costs

By Bizclik Editor

Treasurer Wayne Swan’s plan to balance the budget in the face of a struggling global economy takes aim at Australian families, private health insurance holders and job training programs, among other sectors.

Beginning on 1 July 2013, the $5000 baby bonus awarded to families planning for more than one child will be reduced to $3000 taking $461 million from the national family fund, News.com.au reported.


Read the latest issue of Business Review Australia

Private health insurance costs are also expected to rise, and $277 million will be slashed from the apprenticeship training programs budget.

Other money-saving schemes include:

-          Companies will begin paying monthly taxes, rather than quarterly, saving the government $8.3 billion over four years;

-           Superannuation accounts holding under $2000 and inactive for over 12 months will be taxed, delivering $738 million to the government;

-          University researching funding will be cut by $500 million over four years and government grants will be halted, saving $324 million

-          To fund health reform, $254 million – or $1.5 billion over four years – will be spent to prepare hospitals for future patient use and lower equipment costs.

In total, the Treasurer aims to save $4 billion this year and $16.4 million over a four-year period.


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance