Appendix D

Lowering the tax burdens of Australians

Between 2008‑09 and 2011‑12, the Government will have delivered $46.7 billion of tax cuts to help with cost of living pressures and to reward hard work. These tax cuts mean a person earning $80,000 now has an extra $1,550 in their pocket each year compared to in 2007‑08. At the same time, the recent natural disasters that have hit communities around Australia have left a massive rebuilding task. The cost of this rebuilding task warrants introducing a temporary and progressive flood and cyclone reconstruction levy to ensure the burden is spread in a fair and equitable way. The levy will cost a person earning $80,000 just $150 in 2011‑12, meaning they will still be $1,400 better off than they were in 2007‑08.