Family First calls for tax cuts for ALL taxpayers

FAMILY FIRST CALLS FOR TAX CUTS FOR ALL TAXPAYERS

Family First wants to reduce the tax burden on all Australians and give special help to families by increasing the tax-free threshold according to the number of children they have.

A report in today's Australian says that, in response to Reserve Bank Governor Ian Macfarlane's comments that tax cuts are affordable, the Prime Minister said that was "… identical with what Peter Costello and I have been saying for weeks … It's a question of what the balance and the mix is."

The Government should increase the tax-free threshold as an alternative to reducing the top tax rate, because it benefits all taxpayers.

The Government should:

• Increase the tax-free threshold for all taxpayers from $6000 to $8000 this year – rising to $13,000, the equivalent of a subsistence income, in future years. The increase to $8000 would cost $2.9 billion.
• Give families a further $1000 increase in the tax-free threshold for each dependent child. This would cost approximately $1.7 billion.
• Cut the petrol excise tax by 10 cents per litre, which would cost $3.8 billion.
  

Family First believes Australians should be able to earn a subsistence income before they pay tax. The amount of $13,000 is common sense as it is roughly the level of welfare income for a single adult with no children.

If the market is an indicator, petrol is a significant issue in the community. Large retailers are offering petrol discounts to attract customers. Petrol taxes have a disproportionate effect on families in outer suburbs and regions where public transport is inadequate, people travel further and the two-car household is virtually a necessity.

For media enquiries phone Chief of Staff Felicity Dargan on 0409 550 446