22 Oct 07 Labor promises tax cutsIn a media statement issued on 19 October 2007, Labor announced the release of its tax plan. Under the Labor plan:
- Labor confirms its decision in May 2007 to support the tax cuts outlined in the 2007-08 Budget.
- Labor will provide tax cuts of equal value to those proposed by the government for individuals earning up to $180,000 per year.
- Labor will defer the Government’s proposed tax cuts for those individuals earning more than $180,000 per year - saving around $3 billion over the Forward Estimates.
- Labor will direct $2.3 billion of this amount to an Education Tax Refund for all families receiving Family Tax Benefit A with children at school. This will benefit the education of around 2.3 million Australian school children.
- Labor has a goal for a tax system with the explicit objective of maximising incentive in the future economy.
- Labor has a goal over six years, by 2013-14, of flattening 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%.
Under Labor’s Education Tax Refund, eligible parents will be able to claim:
- a 50%refund every year for up to $750 of education expenses for each child attending primary school (maximum $375 per child, per year).
- a 50% refund every year for up to $1,500 of education expenses for each child attending secondary school (maximum $750 per child, per year).
All families who receive Family Tax Benefit (Part A) will be eligible for Labor’s new 50% tax refund for education expenses. Families would submit their application for this refund as part of their annual tax return. Eligible items will include laptops, home computers, printers, home internet connection, education software and school text books.
For a copy of the media statement, 19 October 2007, and links to associated documents, go here