REDUCING TAXES

The Morrison Government has legislated tax relief so people can keep more of what they earn.

Putting more money into the pockets of hardworking Australians strengthened our economy to respond to this economic crisis.

In the 2020 Budget, the Government brought forward Stage Two of our legislated tax cuts by two years.

This means more than 11 million taxpayers received a tax cut backdated to 1 July 2020.

In the 2021 Budget, the Government extended the Low and Middle Income Tax Offset for an additional year.

This will deliver additional tax relief of up to $1,080 for individuals or $2,160 for couples.

These changes mean more than 7 million Australians receive tax relief of $2,000 or more this year, compared to 2017-18.

This tax relief is part of a major reform to our tax system that will see around 95% of taxpayers face a marginal rate of no more than 30 cents in the dollar in 2024-25.

It means Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and tens of thousands of new jobs.

ACCESSIBLE, AFFORDABLE CHILD CARE

Under Labor, child care fees increased 53% over six years.

Since we came into office, 280,000 more children are in childcare and child care expenditure is up 77%.

This helps families, particularly as women’s workforce participation has reached a record high (61.8% in March 2021).

This financial year, the Government is providing $9 billion in Child Care Subsidy, which makes child care more accessible and affordable.

The child care system is targeted, with those who earn the least receiving the highest level of subsidy (85%). Those who work, train or study the most get the most support.

Approximately 90% of families using approved child care are eligible for a Child Care Subsidy of between 50% and 85%.

A typical family is around $1,300 better off per child per year.

From 1 July 2022, additional support will be provided:

  • For families with more than one child in child care, the level of Child Care Subsidy will be increased by 30% – to a maximum of 90%. This will benefit around 250,000 families by an average of $2,200 per year.
  • The $10,560 cap on Child Care Subsidy will also be removed – benefiting around 18,000 families.

It is estimated these changes will result in around 40,000 mums or dads being able to work an extra day per week.

Families can see how they benefit from Child Care Subsidy at: www.dese.gov.au/early-childhood

Information about fees, vacancies, and quality ratings is available at: www.childcarefinder.gov.au

MORE AFFORDABLE, RELIABLE ELECTRICITY

During six years of Labor Government, power prices doubled.

We are now turning the corner on power prices.

ABS data shows the average price of electricity fell by around 13.2% between December 2018 and March 2021.

The Government is working to reduce power prices, by:

  • Banning sneaky late penalty payments, saving residential customers up to $185 per year and small businesses up to $845 per year.
  • Implementing the big stick legislation requiring big energy companies to put their customers first and pass on savings.
  • Establishing a price safety net through the default market offer, which removes the ‘loyalty tax’ on those who don’t have time to shop around.
  • Setting up a reference price to make it simpler and easier for consumers to understand and compare deals and offers from energy retailers.

The Morrison Government is working to deliver reliable, secure and affordable energy.

MORE AFFORDABLE HEALTH CARE

More Australians are now seeing their doctor without having to pay.

The GP bulk billing rate last year (12 months to June 2021) was 88.8%, up from 82.2% in 2012-13 (Labor’s last year in government).

More than 171.5 million free GP services were delivered in 2020-21 – 67.5 million more than in Labor’s last year.

Since we came into government, over 2,700 medicine listings worth $13.5 billion have been added to the Pharmaceutical Benefits Scheme.

These help people suffering from cancer, heart disease, epilepsy, spinal muscular atrophy, multiple sclerosis, cystic fibrosis, severe asthma, severe osteoporosis and chronic migraines.

Some of these cost thousands of dollars, but are now available for $6.60 (concessional) or $41.30 (general patients) per script.

We have taken steps to make private health insurance simpler and more affordable. Reforms have resulted in the lowest premium changes in 20 years (2.74% in 2021).

BANNING EXCESS CREDIT CARD SURCHARGES

We’ve banned excessive credit card surcharges. This means businesses can now only surcharge what it actually costs them to process card payments.

HELPING FIRST HOME BUYERS

The Morrison Government is helping thousands more Australians achieve home ownership, and supporting thousands of jobs in the construction industry.

Supported by initiatives like HomeBuilder, in March 2021 new housing starts reached their highest level in 20 years.

The Morrison Government is expanding the First Home Super Saver Scheme.

This increases the amount that can be saved for a home deposit through the First Home Super Saver Scheme from $30,000 to $50,000.

This enables first home buyers to save more quickly and build a larger deposit, with concessional tax rates.

The Government is also helping first home buyers, through:

  • The First Home Loan Deposit Scheme – helping another 10,000 first home buyers buy a home with a 5% deposit.
  • The New Home Guarantee – helping 10,000 people build or buy a new home with a 5% deposit.
  • The Family Home Guarantee – helping 10,000 single parents purchase a home with a 2% deposit.

Australians over 60 who want to downsize can now make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home.

This helps older Australians who want to downsize and helps to free up housing for those who are looking for a larger home for a family.

Information current as at September 2021