Federal Budget 2014: Jessica Irvine on the 8 things you need to know

THERE’S plenty of pain but plenty to gain from Joe Hockey’s first budget. Here are the eight key things you need to know.

HEALTH

Ouch! That’s gonna hurt. Get set to pay $7 more to visit the GP. If it makes you feel better, most of the money raised will go towards a medical research investment fund. Still stings, doesn’t it?

FAMILIES

Hold on to your hip pockets. Families will feel the pain of the end of the age of entitlement with payments frozen — not keeping pace with the cost of living — for two years. Those on incomes above $100,000 will lose even more.

REVISIT: Shadow treasurer Chris Bowen joined our experts to take questions on all things Budget-related. See how it unfolded.

PENSIONERS AND AGED

Those golden years just lost some of their shine. From 2017, pension rises will only compensate for inflation and wont keep pace with wages. Young workers will be working til they’re 70. Better start saving now.

JOBS AND SKILLS

Life just got harder for the jobless who will have to wait longer to get the dole. Those under 30 will have to earn, learn or work for the dole. Joe Hockey wants a nation of “lifters, not leaners”. Let’s hope there’s enough jobs to go around.

ECONOMY

Our mining boom is over and we can’t rely on foreigners to fund our future — we’ll have to do that ourselves. The jobless rate will top six per cent for four years and the economy grow below trend until the next election.

TAXATION

Call it what you will, that “temporary budget repair levy” is a new tax on high-income earners — costing two per cent of everything they earn over $180,000. Get ready for pain at the bowser too as petrol excise adds a cent per litre each year from here

EDUCATION

Let’s hope university students are putting their time to good use. Graduates will be charged higher interest on their HELP debts and repayments cut in when they earn over $50,000.

INFRASTRUCTURE

Amid all the budget pain, the government has found $5 billion to lure states to invest more in infrastructure. That’s a wise investment that will help the economy to grow.

Originally published as Federal Budget 2014: Jessica Irvine on the 8 things you need to know