1942

Why is the Australian Government still not getting the point!!! They know that inflation is rising, mortgage rates too, food prices are going up and now petrol prices are on the hot pan too. I am surprised the treasurer Wayne Swan is targeting the medical levy "Singles will have to earn $100,000 before they pay the 1 per cent surcharge - up from $50,000. Couples will be able to earn $150,000 - up from $100,000 - before they are slugged." This silly move will result in adding more burden to the hospital waiting list and overload work for hospital staff.

I believe the government should tackle on rising inflation but he should also look into the "human" life as well, how can anybody living on just $6,000 tax-free threshold? This $6,000 threshold free tax has not been adjusted for more than a decade ago. In one hand Labor government acting as a Robin Hood character (steal from the rich and give to the poor)on the other hand they are short handed. Reviewing the $6,000 has been brought out by parties but nothing has been improved.

In 2007, Senator Andrew Murray Spokesperson on Taxation, Finance and Corporate Affairs has suggested "The Australian Democrats propose a phased increase over a number of years in the tax-free threshold from $6 000 (which is less than half the OECD average) to $20 000. People cannot live on $6 000 a year. Australia?s welfare floor is presently around $13 000, the minimum income required for basic subsistence. There is no justification for income taxing someone earning less than this amount".

Richard Hackett-Jones from Independent candidate for Queensland stated "- Introduction of a $12,000 tax free threshold for each Australian regardless of age. This will apply to adults and each child in a family and will be fully integrated with welfare measures."

Even the former treasurer Peter Costello has mentioned that "From 1 July 2008:
the Low Income Tax Offset (LITO) will increase from $750 to $1,200, providing an effective tax free threshold of $14,000 (up from $11,000) to those taxpayers eligible for the full LITO; the 30 per cent threshold will increase from $30,001 to $34,001; and the 40 per cent threshold will increase to $80,001 and the 45 per cent threshold will increase to $180,001, as announced in the 2007-08 Budget.

So what is the matter with reviewing the long overdue item. I would like to see the Government has a "swap" prgram, then I will nominated the treasurer Wayne Swan to live on a "$6,000" income. Wake-up tresureer "working family" understand you try to look after them but they need fresh air to breath. Target the right issues.

Orion Networks

While i do not want to disagree that this level should be increased, maybe at least bring it into line with other OECD countries. But what i really think is that the idea is not for people to be attempting to only earn $6,000 so they don't have to pay tax. This sounds absolutly crazy to me. For the most part for adults, the minimum wage rate is usually between $15 and $20 on average. If you work this out to how many hours a week you work to earn just $6,000 you would only need to work 5-7 hours a week, i may be wrong but this would still class you as unemployed really.

I do not believe the tax free threashold is designed in the way that you are looking at it from. Anyone who is willing to actually do a decent's week work should not need to worry about the fact that they are going to have to pay tax, even if they are still making relatively low money they still have the LITO available and depending on the industry and job that they have there are going to be some sort of deductions that they would be able to access.