2007 Commonwealth Budget

 

Financial incentives at a Glance

 

Personal income tax reform

·                     All taxpayers will benefit from a further $31.5 billion in tax cuts over the next four years.

·                     From 1 July 2007, the low income tax offset will increase from $600 to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.

·                     This will further reward effort and improve work incentives for lower income and part‑time workers.

·                     From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.

Improving child care assistance

·                     From 1 July 2007, rates of Child Care Benefit will increase by 10 per cent on top of indexation.

·                     From 1 July 2007, the Child Care Tax Rebate will be available as a direct payment shortly after the end of the year.

Increasing retirement savings for low income earners

·                     One‑off doubling of superannuation co‑contribution for eligible contributions made in 2005‑06 to improve superannuation savings for low income earners by $1.1 billion.

Rewarding older Australians and carers

·                     $500 one‑off bonus payment, to ensure older Australians share in the economic growth they helped create.

·                     $1,000 bonus payment to recipients of the Carer Payment and recipients of both the Carer Allowance and either the Wife Pension or Veterans' Affairs Partner Service Pension.

·                     $600 bonus payment to recipients of the Carer Allowance.

·                     These bonuses will be tax‑free and paid by 30 June 2007.