The tax cuts will increase the rewards from working and assist families with cost of living pressures.
Real savings for working families
Andrew and Jane are a couple with one child, Amy, in year 9 at school. Andrew earns $60,000 a year while Jane earns $30,000 a year. The Government's tax cuts reduce Andrew's tax bill by $600 in 2008‑09. Andrew's tax bill is $900 less in 2009‑10 and $1,350 less in 2010‑11 than in 2007‑08. Jane receives a tax cut of $450 in 2008‑09. Jane pays $600 less tax in 2009‑10 and $750 less tax in 2010‑11 than in 2007‑08.
Andrew and Jane's family will take home an extra $1,050 in 2008‑09, $1,500 in 2009‑10 and $2,100 in 2010‑11 relative to 2007‑08, because of the Government's tax cuts. In addition, Andrew and Jane will benefit from the new Education Tax Refund. Over three years they will be able to claim back up to $2,250 of expenses on Amy's education. From 2008‑09 to 2010‑11, Andrew and Jane's family will have up to $6,900 extra in their pockets from the Government's tax changes.
From the first round of tax cuts on 1 July 2008, working families will receive an extra:
These fairer tax cuts provide families with more money in their pockets which helps them with their day‑to‑day costs of living.