Sid Sidebottom (Braddon, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline for the House how Australian households are going to be assisted from 1 July with their cost-of-living pressures.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question, because next Tuesday week is a very big day for working families in this country. It is the day we begin tipping the scales in their favour. In coming weeks households can look forward to significant financial relief with cost-of-living pressures. A typical young family will be $51.54 per week better off as a result of budget initiatives which will kick in next financial year. Aged pensioners and seniors are receiving their $500 bonus over the next week, and the next instalment in the new $500 utilities allowance is due to be paid in the next fortnight.

On this side of the House we do understand that all of those people—seniors and working families—are under price pressures, are under cost-of-living pressures, unlike those opposite who are just playing petty political games. When they were in government they had their opportunity to do something about these cost-of-living pressures, and they did nothing. In fact they said that working Australian families had ‘never been better off’. That is what they said. This side of the House is determined to push ahead with tax reforms outlined in the budget, which will provide $46.7 billion of personal income tax cuts over the next four years. For a taxpayer earning $50,000 a year, the tax cuts will deliver an additional $19.23 per week from 1 July 2008. This will increase to $25 a week from 1 July 2009 and $33.65 from 1 July 2010. When they are fully implemented they will amount to a 20 per cent reduction in their tax bill.

In addition to that, they will receive some relief because we have increased the Medicare surcharge threshold, something opposed by those on that side of the House. They have the hide to come in here and say that they are in favour of relief and oppose this measure in the budget; so they have no credibility here at all. For a single taxpayer earning just over $50,000 a year, the Medicare levy surcharge will result in a further saving of around $500 on their tax bill.

In addition to that, we have the education tax refund. Was that supported by that side of the House?

Government Members:

Government members—No!

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

No. In addition to that, we also have $1.3 billion for the 50 per cent childcare tax rebate. Was that supported by that side of the House?

Government Members:

Government members—No!

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Of course it was not. These will deliver very significant benefits to working Australian families. Help is on the way. We understand cost-of-living pressures. Those opposite do not.