Election Promises on Income Tax- What the Australian Labour party are promising upon being elected to Government

 

Following the Federal election on the 24th November Kevin Rudd of the Australian Labour Party is the new Prime Minister of Australia.

The new Treasurer Wayne Swan confirmed his party will support the tax cuts outlined in the 2007-2008 Budget by the Liberal Party of Australia (the outgoing government). This table shows the rates scales proposed by Wayne Swan over the next three years.

Current		From 1 July 2008		From 1 July 2009		From 1 July 2010
Taxable income	Rate	Taxable Income	Rate	Taxable Income	Rate	Taxable Income	Rate
($)	(%)	($)	(%)	($)	(%)	($)	(%)
0-6,000	0	0-6,000	0	0-6,000	0	0-6,000	0
6,001-30,000	15	6,001-34,000	15	6,001-35,000	15	6,001-37,000	15
30,001-75,000	30	34,001-80,000	30	35,001-80,000	30	37,001-80,000	30
75,001-150,000	40	80,001-180,000	40	80,001-180,000	38	80,001-180,000	37
150,001+	45	180,000+	45	180,001+	45	180,001+	45

In addition the following are a selection of the promises made by Labour Party of Australia during their election campaign:

• By 2013-14 the flattening of Australia’s income tax system by reducing the number of personal income tax rates from four to three- with a personal income tax scale of 15%, 30% and 40%;

• An Education Tax Refund for all families receiving Family Tax Benefit A with children in school. Eligible items will include laptops, home computers, printers, home internet connection, education software and school text books;

• New childcare centres to guarantee all four-year olds up to 15 hours free kindergarten a week;

• AUD150 dental vouchers for children aged 12-17;

• Health checks on all children starting school;

• First Homebuyer saver accounts- eligible for a low tax rate of 15% on the first $5,000 deposited;

• Low interest green loans of up to AUD10,000 for solar power and water tanks;

• AUD500 rebates to install insulation in rental homes;

• Tax credits to help investors build affordable rental properties; and

• Workchoices Law to be scrapped, ending the system of Australian Workplace Agreements.

Only time will tell whether the newly elected government will deliver on these election promises.

This information has been prepared in good faith, is in the nature of general comment only, and neither purports, nor is intended, to be advice on any particular matter.  You should not act or rely upon any matter or information contained in or implied without taking appropriate professional advice which relates specifically to your particular circumstances.  The authors and consultants expressly disclaim all and any liability to any person (whether a reader or not) who acts or fails to act as a consequence of reliance upon the whole or any part of this information.