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Tax cuts for all payers

EVERY Australian taxpayer received a tax cut on July 1. The tax cuts amounted to $1,100 per year for a person on a wage between $30,000 and $40,000, and $850 per year for a person on the average wage of $46,239.
The personal tax cuts announced in this year's Budget follow tax cuts delivered in 2000, as part of The New Tax System, and further tax cuts in the 2003, 2004, 2005 and 2006 Budgets.
In addition to increasing disposable incomes, the tax cuts enhance incentives for participation and improve Australia's international competitiveness.

Low-income earners will not pay income tax until their income exceeds $11,000, an increase of $1,000;
taxpayers will not move on to the 30 cent rate until their income exceeds $30,000, an increase of $5,000; and
from July 1, 2008, taxpayers on the 30 per cent rate tax rate will not move into the next tax rate until their income exceeds $80,000, an increase of $5,000, and taxpayers on the 40 per cent rate will not move into the highest tax rate until their income exceeds $180,000, an increase of $30,000.

The personal income tax cuts ensure that over 80 per cent of taxpayers will continue to pay a top marginal tax rate of 30 per cent or less and that from 2008-09 the top tax rate will apply to only around 2 per cent of taxpayers.
The Government recognises the importance of child care to help families participate in the workforce. The Child Care Benefit has increased by 10 per cent, on top of indexation, and the payment of the Child Care Tax Rebate brought forward.
A family on maximum rate Child Care Benefit with one child in long day care for 40 hours a week will receive $134.80 a week, an extra $16.40. The increased Child Care Benefit will provide additional help to over 700,000 families.
The Better Super changes, the largest reform to superannuation ever undertaken, will increase retirement incomes, simplify the taxation of superannuation, provide more flexibility and choice in how super can be accessed, and improve incentives to work and save.
In particular, the Government has abolished tax on superannuation benefits from a taxed fund to people aged 60 and above from 1 July 2007. As well as improving retirement incomes, the removal of benefits tax will sweep away current complexities and result in a simpler system for retirees and for those about to retire.