The Assistant Treasurer, Senator Nick Sherry, said today that the Coalition's vow to scrap the Resource Super Profits Tax would mean the end of the standard tax deductions measure announced in this year's Budget and would guarantee tax time remains a complex affair for millions of Australians.
"This is another decision where the Coalition has backed the big mining companies over ordinary Australians," the Assistant Treasurer said.
"It would spell the end of the standard tax deduction measure announced in this month's Budget which stands to deliver 4.6 million net winners in the community when it's set at $500, rising to 6.4 million when it hits $1,000."
"And it would spell an end to the goal of a simplified tax time for Australian families and a guarantee of more time dealing with shoeboxes full of receipts - that's Mr Hockey's vision."
Under the Rudd Government's plan, the optional standard deduction would start at $500 in lieu of claiming work-related expenses from 1 July 2012, rising to $1,000 from 1 July 2013.
"The Rudd Government's initiative will mean taxpayers would be, on average, $192 better off - and all with a no hassle, tick and flick system of tax returns," the Assistant Treasurer said.
"This major new initiative is conditional on funds from the Resource Super Profits Tax and Mr Hockey has announced today that he'll sweep this away."
"The Opposition has taken the side of inefficiency and red-tape, instead of backing the Government's move to make life a little bit easier for Australian working families."
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.