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Twin City workers to pay less tax.



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MEDIA RELEASE

TWIN CITY WORKERS TO PAY LESS TAX

Friday, 30 June 2006

Twin City residents can look forward to tax cuts from tomorrow as the benefits of the Coalition Government’s 2006 Budget start to flow. Member for Herbert, Peter Lindsay, said the Federal Budget, handed down by Treasurer Peter Costello on 9 May, announced tax cuts from 1 July 2006, which would benefit all taxpayers - from low-income earners to upper income earners. “On 1 July, every Australian paying income tax will receive a tax cut as a result of this year’s Budget,” he said. Mr Lindsay said the new tax cuts mean: •Low-income earners will not pay tax until their annual income exceeds $10,000; •Those on the lowest tax rate of 15 per cent will not go into a higher tax bracket until their taxable income goes past $25,000; •Those on the 30 per cent tax rate will not pay a higher marginal tax until their taxable income goes past $75,000; and •For those on the two top tax rates, both the rate is cut and the threshold is increased. This means those on incomes between $75,000 and $150,000 will see the rate decrease from a 42 cent rate to a 40 cent rate, while those on the top rate have a reduced top rate of 45 cents in the dollar which applies only to each dollar of income over $150,000. “This latest round of tax cuts follow on from tax cuts delivered in 2000 through The New Tax System and the 2003, 2004 and 2005 Budgets - all thanks to the Coalition Government’s continued strong economic management,” Mr Lindsay said. Mr Lindsay said from 1 July 2006, 80 per cent of Australian taxpayers would face a top marginal tax rate of 30 per cent or less. “Under the tax scales in the 2006 Budget, a person on average weekly earnings will pay $1,209 less than they would have under a 1995-96 scale indexed to inflation,” Mr Lindsay said. “Australian workers are clearly much better off under a Coalition government than they would be under Labor.” For more information: http://www.budget.gov.au/2006-07/overview/html/index.htm