REDUCING TAXES

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

At this year’s Budget, the Government brought forward Stage Two of this tax plan by two years.

This means more than 11 million taxpayers will get a tax cut backdated to 1 July this year.

We are also retaining the Low and Middle Income Tax Offset for an additional year.

These changes will see more than 7 million Australians receive tax relief of $2,000 or more this year.

These tax cuts are 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.

The Government’s new Child Care Subsidy is making child care more accessible and affordable.

This financial year, the Government is providing $9 billion in Child Care Subsidy.

This assists around 1 million families to balance work and parenting responsibilities.

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.

Between July 2018 and March 2020, out of pocket costs reduced by 3.2%.

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

Some examples of typical families include:

  • A family on $50,000, both parents (or a single parent) working with two children under 6 in long day care three days a week at $100 a day. They are more than $3,000 a year better off.
  • A family on $94,000, both parents (or a single parent) working, with two children under 6 in long day care two days a week at $100 a day. They are around $1,500 a year better off.
  • A family on $150,000, both parents (or a single parent) working, with two children under 6 in long day care three days a week at $100 a day. They are around $1,000 a year better off.

Families earning $189,390 or less are no longer limited in their level of subsidised child care. This benefits around 85% of families.

Families earning more than $189,390 to less than $353,680 also benefit from an increased annual rebate cap of $10,560 per child per year.

Families can see how they will benefit 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 5.3% between December 2018 and September 2020.

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 is 87.5% for 2019-20, up from 82% in 2012-13 (Labor’s last year in government).

Nearly 143 million free GP services were delivered last year – 39 million more than in Labor’s last year.

Since we came into government, over 2,550 medicine listings worth $12.4 billion have been added to the Pharmaceutical Benefits Scheme.

These help people suffering from cancer, heart disease, epilepsy, spinal muscular atrophy and severe asthma.

Some of these cost thousands of dollars, but are now available for $6.60 (concessional) or $41 (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 19 years (2.92% in 2020).

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.

An additional 10,000 first home buyers will be able to purchase a new home sooner under our First Home Loan Deposit Scheme.

This builds on the 20,000 first home buyers we are helping to purchase a home this year under this Scheme with a deposit as low as 5%.

To support our home construction industry during the COVID-19 pandemic, the Morrison Government also introduced the temporary HomeBuilder scheme, which provides

grants for new homes, or substantial rebuilds.

As at the end of November, over 32,000 applications had been made. The scheme has been extended to March 31.

The recent Budget also enables an additional $1 billion of low cost finance to support the construction of affordable housing.

This takes the total concessional finance that has been made available to community housing providers to $3 billion.

This is in addition to the $4.6 billion a year the Government provides in rental assistance.

To help older Australians (over 65) who want to downsize, we are now enabling them to 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 December 2020