Federal Budget 2015: What we know so far

JOE Hockey caught families off guard yesterday, and there’s more coming in the Budget this week. Here’s what we know.

TREASURER Joe Hockey caught families off guard when he announced on Mother’s Day there would be no more ‘double dipping’ when it comes to employer and government-funded maternity leave.

It’s one in a series of proposals the government has announced as part of the Jobs for Families package, designed to make the childcare system more accessible and provide an incentive for parents to get back to work.

So with economists predicting the budget deficit for 2015/16 to blow out to more than $40 billion and no surplus in sight, what can we expect for the year ahead? Here’s what we know about Tuesday’s Budget so far and how it might impact your hip pocket.

• The fall in iron ore prices will impact on tax earnings and mean that no surplus is likely over the year ahead.

• Record spending on infrastructure is expected as states take advantage of asset recycling scheme bonus payments.

• There will be a crackdown on welfare cheats through better data matching to identify fraud, and a $1 billion Centrelink computer upgrade to help with this.

• The childcare system will get a major $3.5 billion overhaul with a single payment paid directly to childcare centres to reduce parents’ upfront costs. Stay-at-home parents with a family income more than $65,000 will no longer secure childcare subsidies.

Prime Minister Tony Abbott has promised a "measured, responsible and fair" national budget after the last one was almost his undoing. Picture: AFP

• 10,000 shift worker families will take part in a two-year trial for nannies which will cost $246 million.

• The loophole that allows new parents to claim paid parental leave payments from both the federal government and their employer will be closed, saving nearly $1 billion a year.

• Plans for a $20 billion medical research fund to go ahead

• Changes to the Pharmaceutical Benefit Scheme including removing subsidies from a raft of over-the-counter medicines are expected to save about $3 billion over four years.

• The government will fund $1.3 billion worth of new generation cancer drugs over four years through listing on the PBS.

• $6 bonus for doctors to prompt parents to immunise their children will be doubled to $12. Objectors to immunisation will not be eligible for welfare and childcare benefits.

• Almost $300 million for mental health services

• $200 million for dental health care

• No changes to superannuation this term

• Tighter access to age pension. Part-pension assets test (excludes family home) will be cut to $820,000 for couples.

• $128 million over four years for a financial crimes task force

• Global companies to face tighter laws on shifting profits to foreign tax havens. First tranche of this is expected to reap money in forward estimates.

• Drought package including $250 million for the drought concessional loan scheme in 2015-16, and $35 million to boost economic activity in badly hit towns and regions.

• An extra $40 million to upgrade airstrips and boost air services for remote communities.

Originally published as Federal Budget 2015: What we know so far