On the first full day of the 2007 election campaign, the coalition has announced a tax package offering income tax reductions across the board.
A re-elected coalition government is proposing to reduce the number of tax brackets to four over a five-year period: 15, 30, 35 and 40 cents in the dollar. It proposes raising the tax-free threshold to $14,000 next year.
The tax cuts are worth more than $34 billion.
The aim of the restructure is to arrive at a tax-free threshold of $20,000 with the top marginal rate set at 40 cents.