Budget Gives Tax Cuts; Targets Education, Childcare, Aged, Environment

May 8, 2007

The Federal Government has brought down the Budget that will take it to this year’s election.

The Treasurer, Peter Costello, delivering his 12th Budget, announced:

A surplus of $10.6 billion.
Tax cuts: 30% threshold rises on July 1 from an income of $25,000 to $30,000; from 2008, the 40% threshold increases to $80,000 and the 45% threshold increases to $180,000.
Simplified Income Tax Returns.
University funding increased by $5 billion for capital works; additional income support for tertiary students.
$700 tutorial vouchers for parents with children not meeting literacy and numeracy benchmarks.
$5000 bonuses for teachers completing professional development courses; extra money to ensure trainee teachers have 100 days teaching practice in schools.
10% increase in Child Care Benefit from July 1; Tax rebate to be made available sooner.
Additional money from 2009 for road and rail infrastructure.
One-off doubling of superannuation co-contribution.
$500 one-off bonus payment for older Australians; $600 and $1000 Carer Payment bonuses.
$8000 rebates for solar panel installations.
Additional drought and Exceptional Circumstances funding.
$6.1 billion over 10 years to assist Defence recruitment.
$772 million for improved detection and treatment of chronic and complex conditions.