The Assistant Treasurer, Senator Nick Sherry, has today released data showing there are more than 2 million people in New South Wales who will benefit from 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 2010-11 Budget and would see 2.02 million people in NSW $520 million better off.
"We have a budgeted plan to give workers in NSW the option of choosing a standard deduction instead of keeping a shoe-box full of tax receipts. It is a cut in tax time red tape," the Assistant Treasurer said.
"Under the Rudd Government's proposal 2 million taxpayers in NSW would be net winners."
This is one new measure announced in the May budget and part of the tax reform package to be funded by the Resource Super Profits Tax.
"The Coalition's pledge to block the Resource Super Profits Tax would mean the scrapping of this major initiative to make tax time simpler," the Assistant Treasurer said.
"Let me be clear, this means the 2 million plus beneficiaries in NSW would miss out."
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 people in NSW who would take up the option at 2.02 million in the second year and the amount of saving at $520 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.