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Federal Budget 2021: How it affects an ordinary Australian family

May 11, 2021 - 9.44am

For many, poring over the details of the Federal Budget every year is a torturous exercise best left to economists and media pundits.

The real impacts of the government's biggest one-day policy announcement aren't felt until they reach the suburbs, where real Australians are struggling with the struggles and costs of living and working.

Little care is given to the political implications of supporting gas exploration, with the cost of nappies far more pressing than the national debt.

With that in mind, here's how the 2021 Federal Budget could help or hinder an average Aussie family.

WINNERS AND LOSERS: Who benefits the most from the Budget?

READ MORE: Will you get a tax cut?

he Walkers don't care about politics, but they do care deeply about how much it costs to live and work in Sydney. Here's how the Federal Budget may affect them. Graphic: Tara Blancato

The hypothetical family

The Walkers are a typical Australian family living in Sydney's south-west.

Dad Jaime is a personal trainer earning around $80,000 a year and mum Lauren is a teacher who is currently working in a casual role. She earns around $35,000 a year.

The Walkers have two children under the age of five, and are renting.

They are interested in buying their own home but cannot save for a deposit while covering household costs.

To make things harder, Jaime's father is currently living with them after a series of falls made it too dangerous for him to stay in his own home.

Federal Budget 2021: Will I get a tax cut? Graphic: Tara Blancato

How the Budget helps

The most immediate benefit for the Walkers will be the low- to middle-income tax offset.

As a dual-income couple, the Walkers earn approximately $115,000 a year.

When they submit their 2021-22 tax returns, they will benefit from a combined offset of $2160 that can go straight to their pocket.

The cost of childcare for the Walkers will be even more immediate.

With two children under the age of five, the Walkers will be eligible for an increased childcare subsidy as the $10,560 cap will be removed.

With this in place, the government hopes the initiative will allow Lauren to work an extra day.

The Walkers are also eligible first home buyers who could take advantage of the First Home Loan Deposit scheme.

If awarded one of 10,000 places, they would only need a deposit of around $30,000 (or five per cent) to buy a property in south-west Sydney.

Things are looking better for Grandpa, too.

Under the government's $17.7 billion aged care spending, he could become eligible for one of the government's 80,000 Home Care packages, which would see his needs supported at home with the help of a carer.

With this in place, it would delay Grandpa's move to an aged care facility and decrease living costs for the Walkers.