The 2003-04 Budget provides for an underlying cash surplus of $2.2 billion
while delivering personal income tax cuts.
Personal Income Tax Reductions
- Australian taxpayers will share in personal income tax cuts worth
$10.7 billion over the next four years.
- Personal income tax thresholds will be raised and additional assistance
for low income earners will be provided through an increase in the low
income tax offset from $150 to $235 per year and an increase in the
income level from which the offset is reduced.
- The changes will mean Australian taxpayers can keep a higher proportion
of the earnings they receive after tax, providing improved incentives
to pursue work, advancement and higher skills.
- Increased spending on defence of $2.1 billion over five years from
- $1.1 billion over five years from 2002-03 to augment logistics and
support funding for a range of ships, aircraft and land-based specialist
military equipment, and ordnance purchases.
- $645 million over three years from 2002-03 for Australia's contribution
to disarming Iraq and involvement in post-conflict rehabilitation and
- $157 million over the next four years for a Special Operations Command
to enhance Australia's capacity to respond to threats to national security.