Federal Budget 2022: What the budget means for you
How Treasurer Josh Frydenberg’s budget affects every stage of life from student debt to retirement income.
THE BIG PICTURE
How this week’s budget affects everyone from students to retirees in the bellwether Sydney seat of Reid.
THE ELECTORATE
Reid, now a marginal seat in Sydney’s inner west, was solid Labor until won by the Liberal Party in 2013. Now held by the Liberal’s Fiona Martin on a margin of 3.2 per cent, the diverse electorate of about 109,000 voters is up for grabs by Labor’s Sally Sitou, a Homebush local.
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STARTING OUT
YOUNG SINGLES, 18-24
SOPHIE KANG, 20
“At the moment I’m just focusing on my uni work and trying to get a fulltime job.”
• Student at Macquarie University studying Commerce (marketing)
• Lives in Strathfield with her family
• Works casually in retail but is also starting her own content marketing business
• Is worried about affording a house one day and paying off her HECS
From the 2022 Budget:
MAIN BUDGET TAKE-OUT: “The increase in the New Home Guarantee scheme could definitely help a lot because I am interested in buying a home.”
VOTING: Undecided, but from a Liberal-leaning family. “I think [the Morrison government] are doing a great job at the moment helping the economy starting to build up again.”
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ON THEIR WAY
YOUNG COUPLE, 25 -34
KATHERINE DUONG, 28, and GREG MELNYK, 32
“We are definitely worried about mortgage rates going up, so cost of living is front of mind.” - Katherine
Katherine is an optometrist and director of an optometry practice in Five Dock; Greg is a business development manager who co-runs the business with another partner
• Live in Lidcombe while their house is being built in West Concord
• Concerned about cost of living, delays to construction due to supply chain
• Paying off a mortgage.
From the 2022 Budget:
MAIN BUDGET TAKE-OUT: “We’re a small business and we have to pay our employees fairly so any tax breaks or tax write offs would help us a lot.”
VOTING: Katherine is undecided, but her family have historically voted Labor (Greg is a Canadian national). “Honestly I have to do my research, I don’t know enough about it to be choosing any candidates at the moment.” - Katherine
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SINGLE MUM
MARLEEN MOUR, 35, WITH SON EMMANUEL, 3
“I’m all for equality and enabling women to be able to work and if it wasn’t for childcare I wouldn’t be able to run my business.”
• Lives in Five Dock where she rents an apartment, but she is paying down mortgages on investment properties (a “rent-vestor”)
• Her son is in childcare and she wants support to help families like hers with the load
• Runs her own personal training and weight loss coaching business Fitt Heroes from Five Dock
From the 2022 Budget:
MAIN BUDGET TAKE-OUT: “I’m disappointed there wasn’t more support designed to keep women in the workforce and lighten the burden of single parents in the budget.”
VOTING: Undecided. “As a single mum I would go for any party that supports mums or created better healthcare for emotional wellbeing for mums after they have kids.”
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PEAK EARNING
ESTABLISHED FAMILY, 40s-50s
CRISTINA SPANO, 49, AND HUSBAND PLACIDO, 52
“I’m a small local business and rely on people who want a second job, but with the tax bracket you get taxed so high and you struggle to find good staff who want to stay with you.” – Cristina
• Married for almost 30 years with a 17 year old daughter
• Live in a rented house in Five Dock but own their own home
• Run their business, Italian restaurant L’Angolo Ristorante in Russell Lea
• Daughter Alessia is in Year 12 at a local catholic school, so education funding is important
• They struggle to retain good staff in their restaurant and would welcome any support for the worker shortage
From the 2022 Budget:
MAIN BUDGET TAKEOUT: “A cut to the fuel excise will support our business by making pizza delivery for our restaurant cheaper - the dollar per delivery needs to go up.”
VOTING: Undecided. Ms Spano is from a historically Labor-supporting family but is leaning towards Liberal incumbent Fiona Martin. “Fiona is quite prominent; you see her around she goes and supports kids in schools and I like that she’s young and she is a local.”
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LOOKING TO RETIRE
PRE-RETIREES
KARL NIXON, 59, WITH YOUNGEST SON LIAM, 8
“Affordable housing is dire for young people today, having to mortgage themselves to the hilt or going to mum and dad for a deposit.” - Karl Nixon
• Works full time as an accountant
• Lives in Five Dock
• Has two adult children and an 8-year-old son
• Parents are in aged care so he worries about the sector having enough funding
From the 2022 Budget:
MAIN BUDGET TAKEOUT: “The expansion of the New Home Guarantee scheme (to 50,000 places) gives me no reassurance that the government is taking any serious action on housing affordability.”
VOTING: Undecided but leaning to Labor or Independent.
“It’s about making sure that the candidate that gets elected is putting in policies that are important; I’m not going to vote on personal economic outcomes.” Karl Nixon
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THE GOLDEN YEARS
RETIREES (70+)
TERRY ANSON, 81 AND MARGARET HARTE, 63
“Health is a key priority for those at our stage in life.”
• Both self-funded retirees, own their house in Drummoyne
• Terry worked in the racing industry and Margaret worked in local government before they retired
• Rely on superannuation, shares and investments to support their retirement
• Have private health insurance but worry that it doesn’t cover them enough for what they pay for it
• They’re concerned about economic management
From the 2022 Budget:
MAIN BUDGET TAKEOUT: “I think the superannuation relief is a good thing - I’ve never understood why you have restrictions on accessing your own money.” – Terry Anson
VOTING: Liberal
“I think they’ve always been better economic managers and generally across the board Labor just tended to throw money away left right and centre.” - Terry