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Low income earners will wait twelve more months for their tax cut.



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Wayne Swan MP Federal Labor Shadow Treasurer Tues 20 June 06

LOW INCOME EARNERS WILL WAIT TWELVE MORE MONTHS FOR THEIR TAX CUT

This afternoon in Parliament the Treasurer assured Australian taxpayers that their tax cut cheques were in the mail.

But the Treasurer failed to mention that many low income earners won’t receive a significant slice of their tax cut until after 1 July 2007.

12 months is a very long time to wait for a cheque in the mail.

Recipients of the Low Income Tax Offset will not see a single cent of that payment until they receive their tax return after 30 June next year.

The increased Low Income Tax Offset makes up a significant proportion of the tax cut received by more than 5 million taxpayers earning less then $40,000 a year.

For families who benefit from the Low Income Tax Offset, the financial assistance provided by the LITO could make a real difference in their weekly family budgets.

Unfortunately, because of Peter Costello’s hard hearted decision, these low income families will only see the benefits of the LITO at the end of the financial year.

Rather than a cheque in the mail, for the next 11 months all these families can look forward to is bills, bills and more bills.

Second earners, usually mothers returning to work after the birth of a child, would stand to benefit most from putting the LITO into their weekly or fortnightly pay packets.

By making it easier for mums to return to work this benefit would be shared with the whole economy, because their increased participation boosts economic growth.

Unfortunately the Howard Government has refused to deliver the LITO in fortnightly instalments to help working mums.

Given the Prime Minister’s comments on radio this morning there is a real possibility that his refusal to make the LITO payment fortnightly is an additional front in the Howard Government’s “mummy wars”.

ENDS

Contact: Lachlan Harris 0417 592 338