Luke Howarth (Petrie, Liberal Party) Share this | Hansard source

I rise to talk about a few quick points in relation to last night's budget. The federal budget is a plan for jobs and growth. It is part of our new strong economy for more jobs and growth, and as Australia transitions from the mining investment boom to a stronger, more diversified economy it is vital that our tax system drives economic growth and national prosperity.

Regarding personal income tax relief, middle income Australians are bearing a growing tax burden. To prevent average full-time wage earners from moving into a higher tax bracket, we will increase the middle tax bracket threshold from $80,000 to $87,000 from 1 July this year. At the moment, if someone who is on about $80,000 a year gets bonuses, commissions or overtime, all of that is taxed at 37 per cent rather than 32.5 per cent. The 32.5 per cent rate will now move from $80,000 up to $87,000. A moment ago, the member for Lalor incorrectly stated that high-income individuals would get thousands of dollars in tax relief. Either she has not looked it up, she is lazy or she is not telling the truth, because the fact is it is a $315 tax cut for those people and people on $50,000, $60,000 or $70,000 can get higher wages over time and will not move into the 37 per cent tax rate.

In relation to superannuation, we have also introduced the Low Income Superannuation Tax Offset.

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