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A Tax and Welfare Package As Much As An Environmental Plan

After labouring for months, the Multi-Party Climate Change Committee has brought forth a tax and welfare package as much as an environmental policy.

The DrumWith significant implications for the welfare sector, and tax cuts for everyone earning up to $80,000 a year, in the short term the carbon tax may not be the most important effect of the government’s plan.

The government says around 60% of taxpayers will get a tax cut of at least $300 from July next year, and no one will pay more tax. In 2015-16, further tax cuts come into effect.

The tax free threshold will be raised to $18,200. Treasurer Wayne Swan says up to a million extra Australians will be freed from having to lodge a tax return from next financial year. Many low-income earners who have to deal with the Taxation Office and Centrelink will find they only have to deal with Centrelink. Like the general tax cuts, the tax free threshold will increase again to $19,400 in 2015 when the fixed price on carbon is replaced by the emissions trading scheme. [Read more…]