1. Household Assistance – Supportfor Working Australians
Around 60 per cent of all taxpayers will get a tax cut of at least $300 from 1 July 2012. Everytaxpayer under $80,000 gets a tax cut, and no-one pays more tax.The tax cut will be permanent. From 2015-16, further permanent tax cuts will provide assistancefor a floating carbon price to at least the end of the decade.
Tax cuts to reward hard working Australians
From 1 July 2012, new tax cuts will reward hard work and provide assistance through to the third year of thecarbon price, from day one of the carbon price.
People with annual income of $25,000 will receive a tax cut of $503.
Those on middle incomes within the range of $30,000 and $65,000 will receive a tax cut of $303.The top 23 per cent of taxpayers with annual income of over $80,000 will also get a slight tax reduction.The tax cuts will be delivered through an increase in the tax free threshold from $6,000 to $18,200. This meansworkers earning less than $18,200 won’t have any income tax withheld from their regular pay.When combined with the low income tax offset (LITO), workers won’t pay any net tax until they earn $20,542.The tax cuts are permanent and will flow automatically into regular pay packets from 1 July 2012.
More tax cuts for the floating carbon price
The Government will provide more tax cuts in 2015-16, to every taxpayer up to $80,000. Most will get a further tax cut of at least $80.These cuts are expected to provide assistance for the projected carbon price out to at least the end of thedecade, in 2019-20.These tax cuts will be delivered by a further increase in the tax free threshold to $19,400.These tax cuts are also permanent, and will flow automatically into regular pay packets from 1 July 2015. This isthe minimum level of assistance that will be provided. Assistance will be reviewed closer to the start of the floatingcarbon price period to ensure that it is sufficient, and increased if necessary.