Federal Labor's tax plan a big win for working families in Macquarie

October 21, 2007

Bob Debus, Federal Labor candidate for Macquarie, said today that Labor's Tax Plan for Australia's Future will deliver real tax savings for Bathurst families and help secure the nation's long-term prosperity.

The plan, released today by Kevin Rudd, will help parents support their children's schooling through a 50 per cent education tax refund.

" A Rudd Labor Government is all about giving young people in Bathurst the best possible start in life," said Mr Debus.

" Labor's $2.3 billion education tax refund does exactly that."

All families who receive Family Tax Benefit (Part A) will be eligible for Labor's new 50 per cent tax refund for eligible education expenses on:

*Laptops
*Home computer and associated costs
*Home internet connection
*Printers
*Education software
*School text books

With the new 50 per cent education tax refund, a family with three children, one in primary school and the other two in secondary school, would receive a benefit of up to $1875 each year. Over the course of their children's education, a family with three children would receive assistance up to $21,375.

" By investing in the education, skills and training of our young people we are investing in the future of all Australians," said Mr Debus.

Under Federal Labor's Tax Plan for Australia's Future:

*Labor confirms its decision in May 2007 to support the tax cuts outlined in the 2007-08 Budget
*Labor will provide tax cuts of equal value to those proposed by the Coalition for people earning up to $180,000 per year
*Labor will defer the Coalition's proposed tax cuts for people earning more than $180,000 per year, saving around $3 billion over the Forward Estimates
*Labor will direct $2.3 billion of this amount into the education tax refund to benefit the education of around 2.3 million Australian school children.

Mr Debus said a Rudd Labor Government would also direct $400 million of the savings into a $600 million initiative – building on Labor's National Health and Hospitals Reform Plan – to drive down elective surgery waiting lists across Australia.

Federal Labor's plan also includes the goal over six years (by 2013-14) of flattening Australia's income tax system by reducing the number of personal income tax rates from four to three – with personal income tax scales of 15 per cent, 30 per cent and 40 per cent.