Helping families get ahead (Liberals)

Abstract

The Coalition is committed to helping Australian families to get ahead. Middle income Australians are bearing a growing tax burden. Without action, the average full time wage earner would face the second highest marginal tax rate this year and nearly half of all taxpayers would be in the top two brackets in ten years’ time. The Turnbull Government is giving hard working Australians greater incentive to earn more without being taxed more. The Government will prevent average full time wage earners from moving into the second top tax bracket until 2019-20 by increasing the 32.5 per cent tax threshold from $80,000 to$87,000. This will stop around 500,000 taxpayers facing the 37 per cent marginal tax rate. By pushing up the tax threshold on the middle tax bracket we’ll keep full time average wage earners on the lower rate for longer. This will reward hard working Australians for doing more overtime, picking up more shifts, taking a promotion or a better new job, without being penalised by paying more tax through the higher rate. This change also builds on the tax cuts provided to those on incomes of less than $80,000 to compensate for the carbon tax. By abolishing the carbon tax and keeping this tax relief, we delivered a genuine tax cut for those earning up to$80,000 a year