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Local workers set to pay less tax from 1 July 2006

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Local workers set to pay less tax from 1 July 2006

Thursday, 29 June 2006

From 1 July 2006, local residents can look forward to tax cuts as the benefits of the Coalition Government’s 2006 Budget start to flow, Federal Member for Bonner, Ross Vasta, said today.

Mr Vasta said the 2006 Federal Budget, handed down by Treasurer Peter Costello on 9 May, announced tax cuts which would benefit all local residents - from low-income earners to upper income earners.

“On 1 July those paying income tax will receive a tax cut as a result of this year’s Budget,” Mr Vasta said.

Mr Vasta 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 Government’s continued strong economic management,” Mr Vasta said.

“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.

"These tax cuts are good news for all local workers and I encourage any members of the community who have a query about the changes to contact my office on 3893 3488," Mr Vasta said.