Working families have contributed greatly to Australia's current prosperity, but their efforts have not always been recognised.
In this Budget, the Government delivers a targeted package to reward our hard‑working families and improve the lives of everyday Australians.
Working Families Support Package
Simon and Mary
Simon and Mary are a couple with two girls aged 2 and 4. Mary has decided to return to work three days a week to help boost the family income. While Mary is at work, the girls attend long day care.
Simon earns $40,000 a year and Mary earns $18,000 a year. The Government recognises the financial strains placed on working families such as Simon and Mary's.
Increases in the Child Care Tax Rebate mean that Simon and Mary will receive an extra $1,430 in child care assistance. And because of the Government's tax cuts, the couple will now have an extra $1,500 in disposable income in 2008‑09.
This means Simon and Mary will be almost $2,930 better off in 2008‑09.
Australian families are working long hours and more parents are joining the workforce.
At the same time, the cost of everyday items is placing a real strain on the family budget and there is pressure on housing affordability.
The Government believes that more can be done to reward working families for their contribution to Australia's prosperity.
The take‑home pay of working families should be a fair reward for their effort. Families need to be able to secure affordable rental housing while still being able to put money aside towards a deposit on their own home. They should also be able to afford to send their kids to child care and school to secure their future.
This Budget takes an important step in helping them realise these goals.
For a family with two young children, one parent earning $40,000 a year and the second parent earning $30,000 a year if working full time, the chart below shows the percentage gains in income from the Government's package for different days worked by the second parent.
