Which party will make life easier for you?

With just two days to go until the Federal Election, here are some of the key questions that will affect your hip pocket, and what the major parties plan to do about them.

WILL I PAY LESS PERSONAL INCOME TAX?

The good news is, it seems either way the vote goes middle-income earners will be getting mild tax relief. The bad news? It’s pretty bloody mild.

Coalition: Its policy, announced in the May Budget, is to raise the income threshold at which the 37 per cent tax rate kicks in from $80,000 to $87,000. For someone earning $85,000, that means they will be paying $19,172 in income tax, $225 less than under the current threshold. The maximum amount of tax you can save is $315. The Coalition has also scrapped the temporary two per cent deficit levy for high-income earners.

Labor: It has backed the Coalition’s personal income tax cuts but says it would reinstate the two per cent levy for people earning more than $180,000. That means you would be paying 47 cents in the dollar for every dollar earned over $180,000. Adding in the two per cent Medicare levy, that would once again bring Australia’s top marginal tax rate to 49 per cent.

WILL I STILL BE ABLE TO NEGATIVELY GEAR MY INVESTMENT PROPERTY?

Negative gearing has become almost synonymous with the issue of housing affordability.

In short, if you borrow money to buy a property, and the amount of rental income you earn is less than the loan repayments, you can deduct any net losses against your taxable income to reduce the amount you pay to the tax man.

Coalition: Has promised not to make any changes to negative gearing or the 50 per cent capital gains tax discount on assets held for more than 12 months. Critics say the two policies encourage speculation in the housing market, pushing up prices, but the Coalition maintains it is a legitimate way for middle-income earners to invest and grow their wealth.

Labor: One of Labor’s key promises is to limit negative gearing to new homes from July 2017 — to encourage new construction and not speculation on existing stock — and to halve the capital gains tax discount on new investments to 25 per cent. However, it would grandfather existing investments. Modelling by Brisbane-based Adept Economics has warned the policy would cut property prices by an average four per cent nationwide and a property investor with a $500,000 property would be worse off by $20,000 over 10 years.

WILL I STILL GET FAMILY TAX BENEFIT PAYMENTS?

Most parents in Australia can access government payments to help with the cost of raising children, depending on how much you earn.

There are currently two main payments, Family Tax Benefit A for families with children up to 19, and Family Tax Benefit B for single-parent or sole-income families up to $100,000, and two end of financial year top-up supplements which can be claimed after families lodge their tax returns.

FTB-A has a maximum rate of $6825.50 a year, or $233.94 a fortnight, while FTB-B has a maximum rate of $4339.85 a year or $152.88 a fortnight. The FTB-A supplement is worth up to $726.35 per child, and the FTB-B supplement is worth up to $354.05 per family.

Coalition: The Coalition plans to phase out the two supplement payments by 2018 in exchange for raising maximum rate of the FTA-A by about $10 a fortnight. From July 1, it will also scrap the Family Tax Benefit B when the youngest child turns 13, but single parents, grandparents or great grandparent carers will still be able to claim the payment.

Labor: It has supported the cuts to FTB-B and would keep the two supplement payments, but would halve the FTA-A supplement payment for families earning over $100,000. Modelling by the Australian National University for The Australian found a family on $110,00 a year, with a breadwinner on $80,000 and a partner working part-time on $30,000, with children aged 13 and 14, would receive $1329.60 a year under Labor compared with $1723 under the Coalition.

WILL I PAY MORE FOR CHILDCARE?

Working families have one of the more complicated systems to unravel and there are a number of changes proposed. Both parties have $3 billion packages but there are slight differences.

Coalition: Its policy relies on cuts to Family Tax Benefits being passed through the Senate, as it wants to target families through its child care package instead. This would see the yearly cap on subsidies (of $7500) removed entirely for average income earners, and increased to $10,000 per child for families earning more than $185,000. It says families earning between $65,000 and $170,000 will be about $30 a week ($1500 a year) better off. The Coalition planned to introduce the package by July 2018 but could do this earlier if FTB cuts are passed quickly.

Labor: It wants to lift the yearly childcare rebate cap from $7500 to $10,000 a child, and increase the childcare benefit by 15 per cent. This will provide families with up to an extra $31 a week, and Labor plans to start this from January 2017 — earlier than the government’s plan. It will also provide $160 million to increase childcare and after-school care places in areas of high demand.

WILL GP VISITS COST MORE?

Firstly, calm down everyone, no one is privatising Medicare but there are some changes proposed.

Coalition: Rebates paid to doctors have been frozen since 2014 and this will continue until 2020. This means government payments to doctors won’t increase as cost of living rises. Doctors warn this could force them to charge patients up to $25 a visit, bulk bill fewer patients or reduce follow-up appointments.

The government also plans to scrap extra payments given to pathology and diagnostic companies saying the money hasn’t increased bulk billing of patients getting X-rays and blood tests. Instead it will work towards lowering rents as a way of encouraging bulk billing.

It also plans to lift the cost of subsidised prescription medicines by $5 for general patients and 80c for concessional patients.

In the face of Labor’s scare campaign, the Coalition has also dumped a plan to talk to the private sector about running Medicare’s payment system.

“Every element of Medicare services that is currently being delivered by government will continue to be delivered by government, full stop,” Mr Turnbull has said.

Labor: Is opposed to the rebate freeze and says it will restore indexation of the Medicare Benefits Schedule from January 1, 2017. It will also scrap the removal of extra payments to pathology and diagnostic imaging, as well as price hikes for medicines.

WILL I STILL GET PAID PARENTAL LEAVE?

The Coalition once boasted a “rolled gold” paid parental leave policy. How times have changed.

Coalition: Wants to crack down on “double dipping” but has so far been unable to get its plan through the Senate. Its plan is to “top up” any leave provided by employers so that new parents get a total of 18 weeks of paid leave. Currently parents can get 18 weeks of leave paid at the minimum wage, on top of any leave that employers provide.

Labor: Has not proposed any changes.

WILL MY RETIREMENT SAVINGS BE AFFECTED?

Superannuation has been one of the most confusing issues of the campaign but potential changes actually impact a relatively small group of people.

The main change will impact those earning more than $250,000 regardless of who is elected, and they will have to pay 30 per cent tax (up from 15 per cent) on their super contributions.

Coalition: Anyone who has more than $1.6 million in their super account will have to pay 15 per cent tax on money over this amount, from July 1, 2017. For those who are in the transition-to-retirement phase (those aged between 55 and 64 who are not retired yet but can withdraw tax-free money from their super) they will have to pay 15 per cent tax on the earnings of money they are drawing from.

You will only be able to top up your super fund with extra money (separate from salary sacrifice) to a maximum of $500,000 in your lifetime. Contributions used to be capped at $180,000 a year with no lifetime limit. Earnings on this money will continue to be taxed at 15 per cent. Those who already have $500,000 in their funds will not be penalised.

Labor: If you have enough money in super to earn more than $75,000 a year (you’ll likely have more than $1.5 million in your super fund) you will have to pay 15 per cent tax on the earnings more than $75,000. Earnings for retirees are currently tax-free.

Those earning more than $250,000 will also have their 30 per cent tax concession on super contributions reduced to 15 per cent. This used to only apply to those earning more than $300,000.