This week we have delivered tax relief for all Australian workers. We are making taxes lower, simpler and fairer as part of our plan for a stronger economy.
The significance of this once-in-a-generation tax reform cannot be overstated. From next year, Australian workers will get a tax refund of up to $530. And then in the years ahead, this relief will increase so that Australians get to keep more of their own money. They will not be punished with higher tax rates when they get a new job, a promotion or a pay rise.
They’ll be rewarded for effort. Under our tax relief plan, 94 per cent of all Australians will face a marginal tax rate no higher than 32.5c in the dollar. This comprehensive reform reflects our pledge to the people of Australia — we want you to pay less in tax, not more.
Labor just doesn’t get it, and they never will. They voted against our changes, and if they are ever elected they have already promised to put taxes back up.
It’s important to reflect on what this income tax relief means for you and your family.
If you are a shop assistant earning $45,000, you will have an extra $440 in your pocket next year, and an extra $3380 by the time our plan is rolled out in full. If you are a social worker earning $55,000, you will have an extra $530 in your pocket next year, and an extra $3740 under the full plan.
If you are a midwife earning $63,000, you will have an extra $530 in your pocket next year, and an extra $3740 by the time our plan is rolled out in full. And if you are a schoolteacher earning $88,000, you will have an extra $575 in your pocket next year, and an extra $4055 under the complete plan.
This will make a real difference. And it is only possible because of our careful economic management.
What we are doing is updating and modernising Australia’s tax rates so they are lower, simpler and fairer.
Too many Australians fall victim to bracket creep. When their pay rises over time, they slip into a higher tax bracket and end up paying more.
By changing the tax thresholds, and by completely abolishing a tax bracket, we will ensure that more and more of the extra money you earn is not snatched away by the taxman. It is yours to spend how you choose.
And this long-term plan for tax relief helps low- and middle-income earners first. Once it is rolled out they will pay a smaller share of total tax than they do now.
Our personal income tax relief measures are part of a long-term plan that has now been legislated. Bill Shorten and Labor don’t have a plan, just an uncosted proposal that they rushed to announce.
The only thing Labor understands is higher taxes — not just on workers but on small businesses, retirees, pensioners, homeowners and investors.
They are a risk that Australia simply cannot afford. In contrast the government has a plan for a stronger economy with more jobs.
We are providing record funding to schools and hospitals. We are guaranteeing the essential services Australians rely on.
And we are returning the budget to surplus and reducing debt.
This responsible economic management is the reason so many jobs have been created.
Since the Coalition government was elected in 2013, more than a million jobs have been created, more than 400,000 in the past year alone.
This week’s tax relief is the dividend of our responsible economic management. It is the delivery of our plan for a stronger economy.
Under our government, taxes will always be lower, simpler and fairer.