Treasurer Hockey’s dramatic reshaping of the nation’s Federal Budget 2014 will ask ordinary households to deliver the vision

THERE will be lots to dazzle voters in tomorrow night’s Budget as Tony Abbott and Treasurer Joe Hockey show they are no wimps — but how will it affect your life?

THERE will be lots to dazzle voters in tomorrow night’s Budget as Prime Minister Tony Abbott and Treasurer Joe Hockey show they are no wimps when it comes to grandly reshaping the economy.

But ordinary families will be asked to shoulder much of the Government’s burden, and there will be key Budget measures — affecting basic household finances — you ought keep an eye on.

YOUR INCOME

How much you earn will mean a lot in this Budget. There are just under 300,000 income earners who will be paying the deficit tax because they bring in more than $180,000 a year. And families earning more than $100,000 are expected to lose their tax benefit. There could be other measures where a means test — based on income — will be introduced.

PETROL PRICES

The Government is expected to reintroduce indexation of petrol excise, scrapped in 2001. This will add to family expenses for travel and for goods which have to be transported.

A key factor will be whether the indexation — to increase the petrol excise by the Consumer Price Index, or inflation rate — will return to twice yearly, meaning two certain price increases each year.

The Government’s share of every litre bought could rise from 38.1 cents to about 41 cents in a year. Filling the 70 litre tank of a Camry would bring the Government $2.80 in excise.

Will the rest of Australia be laughing after the Budget announcement? Picture: Daniel Munoz

ROAD BUILDING

The Government is expected to announce it will use the petrol excise to construct roads, and so effectively return the tax to motorists. The Labor opposition will argue many of these projects were already funded and underway. A key element of this measure will be to test how much of the fuel tax goes back to drivers.

HEALTH COSTS

The Government wants families to pay more for such routine procedures as consulting a GP. It is expected to introduce a co-payment which could produce significant cost increases for a family with children. Depending on the charge and where it might be imposed, families will have to decide whether to ration visits to a doctor or spend more.

Health care? It’ll cost you. Picture: Gary Ramage

GOVERNMENT SERVICES

The Government will be providing less than it used to with some 70 agencies expected to be abolished. Most voters would be unaware of the functions of most of these agencies, but their abolition will almost certainly affect our everyday lives.

EMPLOYMENT

The families of public service workers have been told some 16,000 jobs will be lost when the Budget dust clears. The Government is expected to tighten conditions for those looking for work with termination of the dole and work-for-the-dole being chief sticks to encourage people off welfare.

16,000 jobs lost? Awkward.

ECONOMY

There will be no shortage of jobs should the national economy take off as the Government hopes. However, increased costs and a retreat in welfare and services would see many families revising their household budgets. If a large number of voters spend less — because they have less to spend or prices have risen — the economy might suffer and job security and small business activity might be among the casualties.

Originally published as Treasurer Hockey’s dramatic reshaping of the nation’s Federal Budget 2014 will ask ordinary households to deliver the vision