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Transcripts from the Prime Ministers of Australia

Transcript 15991

Family Support Package Starts Tomorrow

Photo of Rudd, Kevin

Rudd, Kevin

Period of Service: 03/12/2007 to 24/06/2010

More information about Rudd, Kevin on The National Archive website.

Release Date: 30/06/2008

Release Type: Media Release

Transcript ID: 15991

Key elements of the Rudd Government's $55 billion working families support package funded in this year's budget will take effect from tomorrow.

These practical measures will help take the pressure off the household budget by ensuring a typical young family with two kids will be $52 a week better off.

The major elements of the Government's working families support package that take effect from tomorrow include:

* $46.7 billion worth of personal income tax cuts for working Australians;

* $4.4 billion to fund a new Education Tax Refund, to help parents with the cost of educating their kids;

* $1.6 billion to increase the Child Care Tax Rebate from 30 to 50 per cent and pay it quarterly;

* $490.7 million to fund a Teen Dental Program that will allow eligible families to claim $150 per teenager per year for a dental check up.

These measures complement the Government's $5.1 billion investment to lift the Utilities Allowance to seniors and carers from $107 to $500 annually, and pay seniors and carers their lump sum bonuses in full.

Personal Income Tax Cuts

Starting tomorrow families will benefit from the introduction of $46.7 billion worth of personal income tax cuts.

These tax cuts will mean every Australian taxpayer will have a little more money in the pay packet every week to help meet rising costs of living.

The Rudd Government's tax cuts will provide an additional $20.19 per week for a taxpayer with an income of $40,000 for an annual benefit of $1,050.

A taxpayer with an income of $80,000 will be $21.15 per week better off and will pay $1,100 less in tax over the year.

Mackay families with a typical taxpayer will be around $20 a week better off as a result of the income tax changes.

Education Tax Refund

The $4.4 billion Education Tax Refund will help the parents of 2.7 million primary and secondary students meet the rising cost of educating their kids.

Eligible families will receive a 50 per cent refund every year for key eligible education expenses up to:

* $375 per primary school child, per year

* $750 per secondary school child, per year

Eligible expenses for the Education Tax Refund include laptops, home computers and associated costs and trade tools for use at school and text books.

The families of more than 15,000 students in Mackay will be eligible to claim the refund, potentially providing a total benefit of up to $7.5 million per year.

The Child Care Tax Rebate

From 1 July the Child Care Tax Rebate will increase from 30 per cent to 50 per cent of out of pocket child care costs up to $7,500 per child in approved care.

This $1.6 billion investment will benefit around 600,000 families nationally and more than 7,000 children in Mackay.

In addition, for the first time the Government will pay the Child Care Tax Rebate quarterly rather than annually.

Other Programs

From 1 July, the $490.7 million Teen Dental Program will provide a $150 voucher for an annual dental check up for more than one million teenagers nationally and more than 5,000 young people in the Mackay region.

Across Australia 3.3 million seniors, carers and disability pensioners are currently receiving the second quarterly instalment of increased Utilities Allowance, including 31,000 residents of Mackay.

In the last week seniors have been paid a $500 bonus and carers, bonuses of $600 and $1,000 depending on the payments they receive. Eligible seniors and carers will also benefit from an increase in the telephone allowance from $88 to $132 annually to help meet the cost of an internet connection.

An estimated 11,000 Mackay seniors and 500 carers are receiving bonuses.

Transcript 15991