PRIME MINISTER
FOR MEDIA 12 APRIL 1989
The wage tax family package announced tonight substantially
addresses the issues raised with me by representatives of
the Women's Tax Convention.
The tax cuts, in particular the reduction in the lowest
rates, will benefit women workers.
The majority of women workers earn less than $ 25,000 a year.
A single taxpayer on average female earnings of about
$ 17., 000 will receive a tax cut of $ 11 a week, or a fall of
almost 19 per cent in the amount of tax paid.
The wages strategy in the Treasurer's statement will ensure
minimum award rates of low income earners will rise.
These rises will be provided in a responsible manner in the
context of award restructuring.
Together with the tax cuts these award rates increases will
substantially raise the earnings of many women workers.
Under the wages strategy, wage increases for low income
earners will be phased in carefully to raise the minimum
award rates of some low paid workers. By phasing in the
increases adverse employment effects will be avoided.
The wage tax strategy targets low income earners as called
for in resolutions from the recent Women's Tax Convention.
The Government has also recognised the cost of children in a
substantial family package. Recognition of the cost of
children through increased family allowance payments was a
high priority of the Women's Tax Convention.
I am pleased the Government has been able to address those
concerns. The family allowance will be increased to $ 9 perchild
per week for the first three children and $ 12 for
subsequent children. This will give a family with two
children an extra $ 5.25 a week tax free.
Families in receipt of Family Allowance Supplement will
receive an additional $ 3.10 per week for children aged
13-15 years.
one income families, including sole parents, will receive
additional assistance of $ 3 per week through the tax system.
The indexation of the family components of the package will
ensure that the value of the assistance to families will be
maintained. The measures for pensioners included in the Government's
package will also benefit women as they make up the majority
of pensions.
All pensioners will benefit from the decision to bring
forward by 12 weeks the timing of indexation of pensions and
benefits. The alignment of the income and tax thresholds so that full
rate pensioners pay no tax will save single pensioners up to
$ 7.50 per week in 1989-90 and up to $ 12.50 per week in
1990-91 when the measure is fully phased in.
Women made their voices heard in the lead up to tonight's
package. The structure of the package is evidence that
their concerns were taken seriously.