HOW will the 2016 Federal Budget affect you?
The Economy
— The Government expects an underlying cash deficit of $37.1 billion in 2016-17, down from an estimated $39.8 billion in 2015-16.
— Last year the government had forecast a return to surplus by 2019. But now it sees the deficit falling to $6 billion by 2019-20 and a balanced budget by 2020-21
— Inflation is forecast to grow to 2 per cent by 2016-17, up from a forecast 1.25 per cent for 2015-16 and 1.5 per cent in 2014-15.
— Net debt hits $326 billion in 2016-17 before peaking at $356.4 billion in 2018-19 and then starting to decline.
Income tax
— Upper limit for the middle income tax bracket to rise to $87,000 from $80,000 from July 1.
— Temporary deficit levy of 2 per cent on income over $180,000 from 2017.
Infrastructure
— Additional $33 billion over the forward estimates to deliver road and rail upgrades
— $594 million to Australian Rail Track Corporation for proposed Melbourne/Brisbane rail link
— $2 billion for investment in dams and pipelines nationally.
Banking
— More than $120 million will be paid to the Australian Securities and Investments Commission to battle misconduct in the financial services industry.
— The extra funding will allow increased surveillance and enforcement in areas such as financial advice, lending and life insurance.
Superannuation
— A dozen different superannuation rule changes have been announced in a reform package that will save the Government $2.88 billion over four years.
— The biggest savings come from lowering the caps on concessional super contributions — such as employer payments and salary sacrifice — to $25,000 a year.
— The amount of super that can be transferred into zero-tax retirement phase accounts will be limited to $1.6 million.
— There’s a big cut in how much non-concessional, or after-tax, contributions people can make in their lifetime, while lower-income earners will benefit from a new tax offset.
— Only 4 per cent of super fund members will be negatively affected by the changes, the government says.
Tax avoidance
— Australian Taxation Office to receive $679 million to help crack down on multinationals, private companies and high wealth individuals
— A new taskforce to raise $3.7 billion in tax between now and July 2020.
— Funding will increase the ATO’s specialist audit and investigation teams dedicated to addressing international tax risks and focusing on wealth individuals, trusts and tax scheme promoters.
Welfare
— Crackdown on welfare rorts.
Disability support pension:
— Save $62 million over five years reviewing 30,000 people receiving DPS payments every year for three years (90,000)
Rental payments:
— Streamline payments so public housing tenants have their rent payments automatically wired to landlords to minimise evictions and encourage investment in new public housing stock.
Try, test and learn fund:
— $96.1 million over four years to target people at risk of long-term welfare dependency (NZ model)
— $80 million cut from Department of Human Services.
Health
— Medicare rebates frozen at just $37 for six years forcing doctors to introduce co-payment.
— Prescription medicine prices to rise by $5 from January
— $1000 free dental care for kids axed
— $1.2 billion aged care cuts
— No reforms to private health insurance which may have cut premiums by up to $300 from next year
— New Medicare rebates for breast cancer MRIs
— $9.4 million to detect, prevent and respond to hospital superbugs and antibiotic resistance
Families
— Plans to press ahead with cuts to the paid parental leave that could leave 80,000 families up to $11,000 a year worse off by preventing them so called “double dipping” on their employer paid leave while at the same time getting government money
— Families will have to wait at least another year for new streamlined childcare support and the lifting of the child care rebate cap from $7500 to $10k which won’t be introduced now until July 2018.
Small business
— Small business tax rate will be lowered by 1 per cent to 27.5 per cent.
— Turnover threshold for small businesses increased from $2 million to $10 million giving access to tax incentives.
— From July 1 the increase to instant write-off for equipment purchases will be extended until June 30, 2017 to businesses with a turnover less than $10 million.
— Access to tax concessions increased to more than 90,000 additional small businesses.
— Unincorporated tax discount increased up to eight per cent for businesses with turnover below $5 million.
Jobs
— Youth job seekers who need to boost their job-readiness will take part in intensive pre-employment skills within five months of registering with jobactive.
— Internship program with up to 120,000 placements over four years to help young job seekers who have been employed for six months or more.
— Job seekers will receive $200 per fortnight on top of their regular income support payment while doing an internship.
— Businesses will receive an upfront payment of $1000 when they take on an intern.
— Australian employers will be eligible for a Youth Bonus wage subsidy between $6500 and $10,000 depending on young person’s job readiness.
Education
— Investment to education, training and child care will increase to more than $41.8 million in 2016-17. Early education and care will increase by 9.6 per cent to $8.6 billion, schools will rise by 8 per cent to $17.6 billion, higher education will increase by 0.9 per cent to $12.3 billion and skills up 7.7 per cent to $3.3 billion.
— The Government’s Higher Education reforms have been delayed by 12 months and university fee deregulation abandoned.
Research
— Backing co-investment in new spin-offs and start-ups created by Australian research institutions through the CSIRO
— Expansion of the CSIRO accelerator program to support public research bodies to achieve commercial success
Communications
— Commercial television and radio license fees cut by 25 per cent
— Funding levels for the ABC to remain at $3.1 billion and $814.2 million for SBS
Defence
— $686 million for continued military operations
— $29.9 billion allocated for defence as outlined in the 2016 Defence White Paper includes 12 new submarines, 9 future frigates and 12 offshore patrol vessels
Terrorism
— $195 million on increased cyber security
Foreign Affairs
— About $42.3 million will be spent on opening consulates in Lae in Papua New Guinea and China and an interim embassy in Ukraine
Tobacco
— Cigarettes up by 12.5 per cent a year for the next four years.
— The limit to the purchase of duty-free cigarettes will also be slashed in half from July 2017 — dropping from just 50 cigarettes to 25.
Important Update
As of January 1st, 2025 the Affordable SA app will no longer be available. If you're a looking for assistance or to connect with programs and services near you, please refer to our website: affordablesa.com.au, or phone our FREE Intake Line on 1800 025 539 to chat to one of our friendly team who can point you in the right direction.
Affordable SA will still be available as a FREE service via website, where you can find all the services you need, in the palm of your hand.
Free call 9:30am - 6pm Monday - Thursday, 9:30am - 4:30pm Fridays.
50 Ways to Save This Christmas
The holiday season is a time of joy and togetherness, but it can also come with financial stress. From expensive gifts to lavish dinners and decorations, the costs can quickly add up. However, with thoughtful planning, creativity, and a focus on meaningful moments rather than extravagant spending, you can enjoy a magical Christmas without breaking the bank. This guide will show you how to save on gifts, food, decorations, and more, while still making the season special. Whether you’re looking to cut costs on presents, host an affordable dinner, or find ways to decorate your home on a budget, these tips will help you make the most of the holidays without overspending.
Here's some tips to start:
Borrow or Swap Items
Need something special for your Christmas celebration? Borrow from friends or family instead of buying new. Whether it’s a serving dish or decorations, sharing saves money and resources.
Embrace Free Fun
Focus on free or low-cost traditions like watching Christmas movies, driving around to see holiday lights, or hosting a board game night. Sometimes the best moments are the simplest ones.
Remember, saving money this Christmas doesn’t mean sacrificing joy or festive spirit. By planning ahead, getting creative, and prioritising what truly matters, you can celebrate the season without financial stress. Whether it’s through thoughtful gifting, resourceful decorations, or embracing community events, these tips will help you enjoy a budget-friendly holiday that’s rich in meaning.
You can sort Christmas savings tips by category below.
Understanding Electricity Costs and Renewable Energy in 2025
The way Australians generate and use electricity is evolving rapidly, with a significant shift toward renewable energy sources. South Australia, once known for power shortages, became the first major jurisdiction to be powered entirely by solar energy—a remarkable milestone. As renewable energy technology becomes more widespread, you may wonder: 'will electricity become cheaper, and what steps can I take to reduce their bills today?'
The answer is promising: electricity costs are expected to decrease over time, but you can start saving now with smarter energy habits, better provider choices, and a deeper understanding of your rights as a consumer.
Your Rights as an Energy Consumer
As an energy customer in Australia, you’re protected by laws that govern your dealings with energy retailers and distributors. These rights ensure transparency, fair pricing, and access to essential energy services. Familiarising yourself with these regulations helps you make informed decisions when choosing providers and addressing billing concerns.
Choosing the Right Energy Provider
1. Use Energy Made Easy
The Energy Made Easy website is a free government service that allows households and small businesses to compare electricity and gas plans. Simply input your details to view a range of offers that suit your energy usage and location. You can also contact them directly at 1300 585 165 for assistance.
2. Key Factors to Consider
When evaluating energy plans, don’t focus solely on price. Keep these factors in mind:
- Contract Length: Are you locked into a long-term agreement, or can you switch plans easily?
- Fees and Discounts: Look out for hidden fees or discounts that may expire after a set period.
- Special Deals: Some plans offer incentives like sign-up bonuses or rebates, but read the fine print to understand long-term costs.
3. Time-of-Use Tariffs
Did you know the time you use energy can affect how much you pay? Time-of-use tariffs mean energy costs vary depending on peak and off-peak periods. Adjusting your habits, like running appliances during off-peak times, can lead to substantial savings. In South Australia, off peak times for residential is 10am - 3pm.
4. Specific Plan Types
Certain plans may cater to your unique situation:
- Smart Meter Plans: These allow for detailed tracking of your energy use.
- GreenPower Plans: For those committed to renewable energy, these plans offset your consumption with sustainable energy sources.
- Solar Energy Plans: If you have solar panels, look for plans with competitive feed-in tariffs.
- Regional Plans: Some plans are better suited for urban or rural areas, depending on infrastructure.
Reducing Energy Usage to Lower Bills
One of the simplest ways to save money on electricity is to use less of it. Conducting a home energy audit can help identify energy inefficiencies and opportunities to save. You can conduct this audit yourself by borrowing a free Home Energy Audit Toolkit from your local library.
Living Areas
- In Summer: Close windows, doors, curtains, and blinds during the day to keep the heat out. Use fans instead of air conditioners when possible, and if using air conditioning, set it to 26°C.
- In Winter: Seal draughts by closing windows and curtains. Set central heating to 18°C.
- Lighting: Switch to energy-efficient LED lights and turn them off when not in use.
- Standby Power: Switch off appliances at the wall to eliminate standby power usage.
Kitchen
- Ensure adequate space around your fridge for ventilation and check that its seals close firmly.
- Cover pots and pans when cooking to retain heat and reduce energy use.
- Only run the dishwasher when it’s full.
Bathroom and Laundry
- Wash clothes in cold water whenever possible. If using hot water, set it to 60°C.
- Dry clothes on a line instead of using a dryer.
- Install low-flow showerheads to reduce hot water usage and aim for showers no longer than four minutes.
Accessing Financial Help for Energy Bills
If you’re struggling to pay your energy bills, financial assistance may be available. Options include:
- Temporary or ongoing bill relief through government programs.
- Guidance from us at Affordable SA, call us today on 1800 025 539.
Additionally, explore our Utilities Programs listed on Affordable SA, which provide tailored solutions for reducing energy costs and managing bill payments.
The Future of Renewable Energy and Costs
As renewable energy becomes the backbone of Australia’s power grid, the overall cost of electricity is projected to decline. Solar power, wind energy, and advancements in battery storage are paving the way for a greener, more affordable future. Programs such as GreenPower and feed-in tariffs for solar customers offer opportunities to actively participate in this transition while saving money.
However, the key to maximising these savings lies in understanding your energy consumption and making adjustments today. By selecting the right provider, using energy-efficient appliances, and tapping into available support programs, you can enjoy both immediate savings and long-term benefits as Australia transitions to a renewable energy future.