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Labor gives families choice again.



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LABOR GIVES FAMILIES CHOICE AGAIN

Families have a stark choice as they go to the polls tomorrow to vote.

Labor will deliver higher family payments, tax cuts, and more affordable childcare that will ease the squeeze on family budgets.

Labor will deliver a simpler family payment that will end the risk of debts

Families, whether single income, one and a half income, or two-income will be big winners under Labor’s policy.

Labor will remove the Howard Government’s penalties for parents who choose to return to work.

A comprehensive analysis of the impact of Labor and Coalition election policies shows families will be better off under Labor (see attachment).

The combination of Labor’s tax, families and childcare policies trump the Coalition whether families choose to live off one income or both choose to work.

For example, a family where a parent chooses to return to work 2 ½ days a week will keep almost $5,000 extra of their earnings each year under Labor compared to the Coalition’s punishing policy.

The analysis includes all Labor and Coalition policies for families, including:

• Labor’s simpler family payment and Working Tax Bonus; • Labor’s tax free guarantee; • Labor’s free day of childcare; • The Coalition’s complex Family Tax Benefit A and proposal to increase Family Tax

Benefit B by $300 per year; • The Coalition’s disappearing1[1] $600 FTB-A supplement

• The Coalition’s 30% childcare rebate

1[1] The Coalition has legislated to claw back the value of the $600 FTB-A supplement after the election Source: Family Assistance Legislation Amendment (More Help for Families) Bill 2004

Labor’s policy is also designed to address the punishing welfare traps for jobless families who attempt to move off benefits and into work. Such families will be over a $1,200 better off under Labor compared to the Coalition.

After nearly nine years the Coalition has failed to address the pressures of work and family - it is now clear only a Latham Labor Government will deliver.

ENDS Fri 8 Oct 04 Web: www.SwanMP.org

Contact: Wayne Swan on 0418 795 329 Matt Linden on 0407 430 613

Coalition (Election 2004)

One child under 5, one child under 12

Single Income 1 ½ Income

Two income

Private income $40,000 $58,000 $76,000

Tax and Medicare Levy $8,772 $10,847 $16,284 FTB (A) $6,980 $3,533 $3,533

FTB (B) $3,348 $565 $0

Total FTB $10,327 $4,099 $3,533

Net tax payable -$1,555 $6,748 $12,751

Child care benefit $0 $2,474 $2,795

Child care costs $0 $5,858 $11,717

Child care rebate $0 $1,015 $2,676

Net child care costs $0 $2,369 $6,245

Disposable income $41,555 $48,883 $57,004

Gain from working $7,327 $15,449

ALP (Election 2004)

One child under 5, one child under 12

Single Income 1 ½ Income

Two income

Private income $40,000 $58,000 $76,000

Tax and Medicare Levy $7,336 $10,250 $15,452 Better Family Payment $9,755 $8,155 $4,555

Net tax payable -$2,419 $2,095 $10,897

Child care benefit $0 $2,474 $2,795

Child care costs $0 $5,858 $11,717

Free Day $0 $1,354 $1,784

Net child care costs $0 $2,031 $7,137

Disposable income $42,419 $53,874 $57,966

Gain from working $11,455 $15,547

Net Gain over Coalition +$863 +$4,992 +$961