The Federal Labor Government delivers its third round of tax cuts.
Date: 30 June 2010
Territorians will receive some extra help with cost of living pressures, with the Gillard Labor Government's third round of tax cuts starting on July 1, Senator Crossin said.
Senator Crossin said Territorians had worked hard during the global financial crisis to help keep Australia out of recession and deserved some extra assistance with the family budget.
"I was so proud of the way the people across the Territory pulled together last year in the face of the global recession.
"The resilience that workers and employers showed in these challenging times to keep our economy strong is exactly why they deserve any help the government can provide in the face of cost of living pressures"
For those Territorians earning $50,000 a year, the tax cuts starting 1 July will mean:
- An extra $450 in the pocket each year; and
- An extra $1750 in the pocket each year since coming to office, when combined with tax cuts delivered in the past two years.
Senator Crossin said that the income tax relief has been designed to strengthen our economy as well as helping households make ends meet.
"The Gillard Labor Government is determined to deliver real cost of living support to the working families in the Northern Territory."
"On top of three income tax cuts in three years, families have received stimulus payments, a major boost to the aged pension and a historic paid parental scheme."
Senator Crossin said that this was also in addition to further cost of living relief delivered through the Childcare Tax Rebate and the Education Tax Refund.
Compared with their income tax liability for 2007-08 (and excluding the Medicare levy) by 2010-11:
- a person earning $20,000 will have received an income tax cut of around 56 per cent,
- a person earning $50,000 will have received an income tax cut of around 18 per cent; and
- a person earning $80,000 will have received an income tax cut of around 8 per cent.
Also from 1 July 2010 the Low Income Tax Offset will increase for the third time in a row, from $1,350 to $1,500. This means the effective tax free threshold for taxpayers eligible for the full low income tax offset will increase from $15,000 to $16,000.
Lifting the effective tax free threshold for low-income workers will continue to provide more incentive to participate in the workforce, particularly for part-time and older workers.
Tax cuts will include lifting the 30 per cent marginal tax rate threshold from $35,001 to $37,001 and decreasing the 38 per cent marginal tax rate will be reduced to 37 per cent.
The amount of income a senior Australian eligible for the Senior Australian Tax Offset can earn before they incur an income tax liability will increase from $28,867 to $29,867 for singles, and from $24,680 to $25,680 for each member of a couple.
Senator Crossin said that all of these measures are part of the Government's plan to strengthen Australia's economy so it delivers for families.
"I am proud to be part of the Gillard Labor Government, a team that is committed to consistently helping working Australians through the tax system."