Appendix D

Lowering the tax burdens of Australians


The Government will be building on the third consecutive year of tax cuts. From 1 July 2011 the Government will introduce a 50 per cent discount on up to $1,000 of interest income, and from 1 July 2012 taxpayers will have the option of a $500 standard deduction for work‑related expenses and the cost of managing tax affairs to simplify their tax returns. The standard deduction will increase to $1,000 from 1 July 2013.


Tax benefit as per cent of tax paid (including Medicare levy) in 2009‑10

Table: Lowering the tax burdens of Australians
  • (1) The cameos assume that the individual receives at least $1,000 per annum of interest income.
  • (2) The cameos assume that the individual has existing deductions for work related expenses and cost of managing tax affairs of $400 per annum, which are replaced with a standard deduction.
  • (3) Dollar gains for the interest income discount and standard deduction are inclusive of changes in Medicare levy liability and entitlement to the Low Income Tax Offset.
  • (4) Net tax in 2009‑10 refers to the net income tax plus Medicare levy liability of an individual, assuming application of the 2009‑10 Medicare levy thresholds for a single person, entitlement to Low Income Tax Offset and no entitlement to any other tax offsets.
  • (5) In some cases additional benefits may be received, where changes in taxable income (and therefore adjusted taxable income) lead to an increased entitlement to Government payments.