9 June 2010

Abbott opposes tax time gain for 460,000 South Australians

The Assistant Treasurer, Senator Nick Sherry, has today released data showing that there are 460,000 people in South Australia who stand to lose out if the Coalition maintains its commitment to drop the Rudd Government's tax time standard work deduction measure.

The important step towards a 'tick and flick' tax time for most Australians was announced in the Budget and would see 460,000 South Australians $120 million better off.

"The Coalition's pledge to block the Resource Super Profits Tax would mean the scrapping of this major initiative to make tax time simpler for South Australians," the Assistant Treasurer said.

"We have a budgeted plan to give hard-working South Australians the option of choosing a standard deduction instead of keeping a shoe-box full of tax receipts."

"Under the Rudd Government's proposal 460,000 South Australians would be net winners."

"The Opposition is more interested in looking after multi-national mining companies than making life just that little bit easier for working families in an age when time constraints are growing bigger."

"The Opposition is short-changing South Australians of time and money by coming out on the side of more red-tape and inefficiency."

The Rudd Government's scheme for standard deduction for work expenses would start at $500 from July 2012 and rise to $1,000 in July 2013.

Treasury estimates the number of South Australians who would take up the option at 460,000 in the second year and the amount of saving at $120 million over the first two years of the policy.

Nationally, 4.6 million Australians would be net winners in the first year of the scheme, rising to 6.4 million in the second year.

Of those who benefit, it is expected that around 66 per cent would have a taxable income of less than $50,000 in 2012-13 and around 60 per cent would have a taxable income of less than $50,000 in 2013-14.