Tax cuts to begin, says Swan

Wayne Swan is happy to hand out presents on his birthday.
Australia's deputy prime minister and treasurer, who turned 56 on Wednesday, took
the opportunity to remind Australians of another round of tax cuts that come into
play on Thursday.
"It gives me a good feeling on my birthday to deliver a third round of tax cuts from
this Labor government," Mr Swan told reporters in Canberra.
From July 1, a worker on $50,000 will get a tax cut worth $450 a year, taking the
total cuts over the three rounds to $1750.
For someone on $80,000, it's an extra $300 per year and a total of $1500.
The tax cuts come as a result of the 30 per cent tax threshold increasing to $37,000
from $35,000 and the marginal tax rate for those earning $80,000 to $180,000
decreasing to 37 per cent from 38 per cent.
At the same time, the low income tax offset (LITO) will increase to $1500 from
$1350, effectively lifting the tax free threshold to $16,000.
The LITO will have doubled from $750 since mid-2008.
"These tax cuts reward hard work, strengthen the economy and of course they help
with cost of living pressures," Mr Swan said.
"We understand they are not a lot but every bit helps."



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