From privatising Australia Post to abolishing the family tax benefit, here are changes from the report you need to know about

Privatisation

The commission recommends the privatisation of ten major entities, including Australia Post, the Australian Mint, Snowy Hydro and the Australian Submarine Corporation. It also proposes that a raft of agencies be abolished, merged and reworked.



Who it will hit

It depends on the basis on which the entities are privatised, but in concept, consumers who access services from government, such as postal services, will in future be getting their service from a private provider.

Federal-state relations

The commission recommends that the tier of government closest to the people accessing the service delivers and manages the service. In practice, this would see the states and not the Commonwealth become the major player in public service delivery. It proposes a quasi state income tax to fund the delivery of services, replacing the block grants Canberra currently gives the states to run health and education.



Who it will hit

Predominantly, the states, politically. This change would make state governments more politically and practically responsible for services they aren't currently responsible for. The proposal will concern advocates who prefer that services be delivered according to national templates and uniform standards.

Pension

Aged pensions should be more tightly means-tested, applying to recipients in 2027-28.



Means-testing including the family home in some cases. Value of the family home considered in the test if it has a value over $750,000 for a couple and $500,000 for singles in today’s dollars.

The eligibility age should be linked to 77% of life expectancy at age 65 from 2033. This would see the eligibility of the pension rise to 70 in 2053.

New indexation of 28% of average weekly age rather than male average to ensure it rises more slowly.

Who it will hit

People under 54 years who will be coming of age if the changes are introduced in 2027.

Aged and superannuation

Tighter testing on the Commonwealth Seniors Health Card by adding deemed income from tax-free superannuation to income test.



Extending the preservation age (currently 55 years going to 60) to 62 by 2027.

Then tying the superannuation preservation age (at which you can access) to five years below the aged pension.

Who it will hit

People 49 and under seeking to access superannuation by 2027.

Pensions and NDIS

Income test for Carers Allowance, limit Carers Payment to those whose work capacity is affected by carers responsibilities and limit one carer supplement payment per carer per year.



Tighten disability assessment and participation criteria for disability support pension, particularly those under 35 with some work capacity.

Impose sustainability on NDIS by slowing down the phase in, even though it will require re-negotiation with the states.

Amend NDIS governance by creating a prescribed agency with chief executive officer.

Impose contracting arrangements in disability services to force competition in NDIS.

Who it will hit

All disabled people, carers

Paid Parental Leave and Childcare

PPL should be capped at average weekly earnings.



Company surcharge of 1.5% on biggest companies should be maintained.

Cost savings should be put towards extended childcare, including “in-home” care (nannies) not currently subsidised.

Split assistance for childcare should be streamlined into a single system and means-tested.

Who it will hit

All women above average weekly earnings will potentially lose Abbott’s higher PPL payments.

Childcare payments will potentially decrease for all families.

Families who can afford nannies will be part-reimbursed.

Family Tax Benefits

Family Tax Benefit Part B will be abolished and only sole parent families will receive a supplement.



Who it will hit

Families where one parent stays at home to look after children.

Medicare

Co-payments of $15 for all Medicare funded services, with safety net payment of $7.50 for more than 15 visits a year and $5 for concession card holders.



Higher income earners should take out private health insurance for basic services to replace Medicare.

Encourage states to introduce a co-payment for less urgent emergency department visits.

Increase the general extended Medicare safety net threshold from $2000 to $4000.

Audit the Medicare benefits schedule to replace expensive items with cheaper alternatives.

Deregulate private health insurance, including allowing health funds to vary premiums to account for “lifestyle” factors like smoking.

Who it will hit

Everyone accessing health services.

Pharmaceutical Benefits Scheme

Co-payments for all medicines.



A new independent authority to oversee all listings.

Open pharmacies to competition.

Who it will hit

Everyone who buys medication.

School and Higher Education

Transfer of all policy and funding responsibility for schools to states.



The commission questions the funding increase under the Gonski model.

All commonwealth funding should be delivered in three non-transferable buckets, government schools, private schools and Catholic systemic schools.

Annual per student funding from 2018 – indexed by weighted average of Consumer Price Index and Wage Price Index.

Require states to publish how they allocate school funds, more national and international testing, publish student outcomes consistently.

University students should pay 55% of the cost of an average bachelor degree, compared with the 40% they pay currently.

Who it will hit

Students

Rural Disaster Relief

Abolish the Farm Finance Concessional Loans Scheme as it encourages farmers to take on more debt.

Abolish the Disaster Recovery Allowance, which provides short term income support to employees, small business and farmers who experience loss of income.

Abolish the Natural Disaster Relief and Recovery Arrangements.

Make grants based on each disaster paid at between 25-33% of estimated reconstruction costs.

Who it will hit

Smaller farmers accessing concessional loans.

All residents affected by natural disaster including floods, cyclones, bushfires.