Coalition secures tax relief for hard working Australians

Thursday, 21 June 2018

68,888 low and middle income earners in Hume will get tax relief after the Federal Coalition’s Personal Income Tax plan passed through Parliament today. Federal Member for Hume Angus Taylor said this was a win for all working Australians who want to get ahead.

“Taxes in Australia will now be lower, fairer and simpler, with 68,888 people and their families in Hume benefitting from tax relief of up to $530 in 2018-19,” Mr Taylor said.

For example:

  • A hairdresser on $50,000 in Hume will have an extra $530 in their pocket from the Budget year onwards, with an extra $3,740 in their pocket over the first seven years of the tax plan as the tax relief increases.
  • A shop assistant on $45,000 in Hume will have an extra $440 in their pocket from the Budget year onwards, with an extra $3,380 in their pocket over the first seven years of the tax plan as the tax relief increases.

“Under our plan, 94 per cent of Australian workers will not face higher marginal tax rate of more than 32.5c in the dollar, with our first priority low and middle income earners because we understand the benefits of a stronger economy have not yet flowed to all,” Mr Taylor said.

“You will have the certainty that when you earn more, get a pay rise or work more hours, you won’t face ever-increasing tax rates.

“In contrast to the Labor Party, our plan is not about creating winners and losers. We are not putting up taxes on some Australians to pay for tax relief for other Australians,” Mr Taylor said.

“The Labor Party stands for higher taxes on all Australian wage earners and higher taxes on the businesses that employ them.

“Under the Government’s legislated plan, the tax system works for all Australians.”

The Coalition’s legislated plan has three steps:

One     Tax relief for middle and low income earners now. In 2018-19, over 10 million Australians will get tax relief, with 4.4 million Australians receiving the full $530 benefit.

Two    Lifting tax brackets, to protect Australians from the impact of ‘bracket creep’, taking the $87,000 tax threshold to $90,000 in 2018-19 and then to $120,000 in 2022-23. Tax relief provided under the offset in step 1 will also be locked in from 2022-23 by taking the $37,000 tax threshold to $41,000, and lifting the low income tax offset to $645.

Three  Ensuring more Australians pay less tax by making personal taxes simpler, removing an entire tax bracket, that will mean around 94 per cent of taxpayers are projected to face a tax rate of 32.5 per cent or less.

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