Appendix C Helping households with the cost of living

The spending power of Australian households has increased over the term of this Government, thanks to over $47 billion in tax cuts in the four years to 2011‑12, and benefits like the Schoolkids Bonus, the Income Support Bonus, increasing Child Care Rebate from 30 per cent to 50 per cent of out of pocket costs, up to a maximum of $7,500 per year for each child, and reforming the Age Pension, including a one‑off pension increase in 2009.

Projected improvement in the real disposable incomes and the net tax thresholds of different household types from 2007‑08 to 2013‑14(a)

Appendix C - Helping households with the cost of living
Household type
(wage as a percentage of the average wage)
Real disposable income
($2012‑13)
Real net tax threshold income
($2012‑13)
2007‑08 2013‑14(b) % change 2007‑08 2013‑14(b) % change
Single person (67%)$36,679$40,99911.8%$20,940$23,35911.6%
Single person (100%)$51,021$56,75811.2%$20,940$23,35911.6%
Single person (167%)$78,687$87,24510.9%$20,940$23,35911.6%
Sole parent (0%)$30,428$33,3609.6%$57,870$60,8165.1%
Sole parent (67%)$51,682$57,48011.2%$57,870$60,8165.1%
Single income couple (133%) (c)$68,050$74,3049.2%$37,598$38,9603.6%
Single income couple (167%) (c)$81,079$89,66410.6%$37,598$38,9603.6%
Dual income couple (100 & 33%)$71,084$79,85112.3%$38,939$41,2816.0%
Dual income couple (100 & 67%)$87,700$97,75711.5%$39,070$43,03610.2%
Single income couple with children (100%)$61,573$66,7378.4%$57,870$60,8165.1%
Single income couple with children (133%)$74,047$80,5458.8%$57,870$60,8165.1%
Single income couple with children (167%)$86,781$91,6395.6%$57,870$60,8165.1%
Dual income couple with children (100 & 33%) (d)$79,801$89,39212.0%$68,749$75,3389.6%
Dual income couple with children (100 & 67%) (d)$97,495$106,5969.3%$72,947$82,89413.6%
Dual income couple with children (167 & 100%) (d)$135,940$151,34511.3%$72,152$81,75313.3%
Single pensioner (0%) (e)$16,538$20,87826.2%$31,450$34,4659.6%
Pensioner couple (0 & 0%) (e)$27,204$31,47615.7%$51,861$61,04917.7%

(a) The average weekly ordinary time earnings (AWOTE) for full—time employees is used as the average wage.
Disposable income is the sum of private income and government cash transfers less net tax paid.
The net tax threshold is the private income at which taxes paid exceed cash benefits received.
Families with children have two children, aged 3 and 8 years old.
Families hold Private Health Insurance cover.

(b) Inclusive of the clean energy supplements which are paid to assist households with the impact of the carbon price.

(c) The spouses of couples without children are aged over 60 years old. As such their partners may be eligible for the Dependant Spouse Tax Offset.

(d) The hourly rate of child care is $5.70 per hour in 2007‑08 and $7.90 per hour in 2013‑14. For the calculation of real disposable incomes, the younger child is in long day care for 2 days, 4 days, and 5 days per week for families earning 100% & 33%, 100% & 67% and 167% & 100% respectively. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner. The older child is not in care.

(e) In calculating net tax thresholds, income is assumed to be from investments which earn a rate of return, equal to the current deeming rates. The calculations include the effects of the assets test.