Dear constituent/supporter
I welcome the Federal Government’s 2006 Budget announcement in particular lowering Personal Income Tax, incentives in the area of Superannuation and increased Child Care places.
The new tax cuts come on top of $50 billion worth of tax cuts nationally already implemented since 2002. From 1 July 2006:
- The 30 per cent threshold will be raised to $25,001
- The 42 per cent marginal tax rate will be cut to 40 per cent and the threshold will be raised to $75,001.
- The 47 per cent marginal tax rate will be cut to 45 per cent and the threshold will be raised to $150,001.
- The Low Income Tax Offset (LITO) will be increased to $600 per year and phase out from $25,000, up from $21,600. Those eligible for the full LITO will now not pay tax until their annual income exceeds $10,000 per year.
- Senior Australians who are eligible for the Senior Australians Tax Offset (SATO) will now pay no tax on their annual income up to $24,867 for singles and up to $41,360 for couples.
- The Fringe Benefits Tax rate will be cut to 46.5 per cent.
- $9.3 billion in schools funding – an increase of 9% since last year and 158% since 1996.
Seniors in the electorate of Berowra would also benefit with the Utilities Allowance and recipients will receive a one-off bonus additional payment by 30 June 2006 to assist with the cost of household bills of $102.80 per household.
The special work of local carers will be rewarded through a $1,000 bonus payment to recipients of the Carer Payment and a $600 bonus payment to recipients of the Carer Allowance – also by 30 June this year.
Another important announcement is in the area of Child Care to make childcare places in the electorate more accessible. The Government is removing the cap on the number of outside school hours’ care and family day care places, with an investment of $60 million over four years. It is estimated this will create an additional 25,000 places.
In other Budget measures, Berowra residents will benefit by:
- A new plan to simplify and streamline superannuation will further improve the retirement incomes.
- The removal of benefits tax and reduction to the asset test taper rate will increase the incentives to save for retirement.
- The maximum payment per child under Part A has increased from around $2,400 to $4,200 a year. Families will now be able to receive the maximum amount if they earn up to $40,000 – providing local additional assistance to almost half a million Australian families.
- Business will also have their compliance costs reduced further under changes to FBT rules.
- In 2006-07 the Government will spend $48 billion on health and aged care
- A range of reforms to simplify the tax system for small business – reducing taxes on small business by $435 million over 4 years and delivering $40 million worth of changes to simplify fringe benefits tax.
This budget will make it easier for local parents to participate in the workforce, allowing them to take further advantage of the unprecedented employment opportunities that have become available under the Howard Liberal Government’s economic management.
With tax cuts and increased family benefits, more families will have more money in their pockets, and more funding for families lays the foundations for an even stronger local community into the future.
Now that the Government has paid off Labor’s $96 billion dollar debt legacy, it is saving $8 billion in interest costs every year, making these Budget measures affordable and sustainable.
This is a great budget for all local residents. It builds on 10 years of strong economic management of the Howard government that has seen Tasmania’s fortunes turn around since John Howard became Prime Minister.
It is pleasing that local road constructions under the Roads to Recovery Program in the seat of Berowra will double next year making roads safer and relieving traffic congestion. An extra amount for Baulkham Hills Council - $766,343 and Hornsby Shire Council $652,362 has been announced in 2005-06.
This additional funding will allow Baulkham Hills and Hornsby Shire Council to accelerate the upgrading of local road infrastructure and increases these councils’ three year allocation to 2009. The Coalition Government’s responsible economic management has provided an additional $307.5 million to be invested in local roads this financial year in addition to the ongoing Roads to Recovery Program.
The Roads to Recovery program has been hailed universally by local governments as the most valuable programme for improving their transport infrastructure. Praise from the Australian Local Government Association is an indication that this year’s Budget is delivering practical benefits for our local Council.
This funding is part of the Coalition Government’s plan to keep our economy strong by investing in vital transport infrastructure. The Coalition Government will invest $2 billion in local road improvements in the financial years 2004-05 to 2008-09. This funding comprises $1.78 billion in Roads to Recovery funding and $220 million through the AusLink Strategic Regional Program.
I have also added other important initiatives attached to this e-news letter.
Kind regards
Philip Ruddock MP
Member for Berowra
GENERAL POINTS
Child Care
Parents will benefit from a new national Child Care Management System that will ensure responsive and reliable childcare. From 1 July 2006, families will be able to phone the Child Care Access Hotline to get up-to-date information on services and vacancies in their local area.
From 1 July 2006, parents will be eligible to receive the new Childcare Rebate – a rebate of 30% of out-of-pocket childcare expenses up to $4,000 per child per year.
Defence & National Security.
Defence funding of $19.6 billion – an increase of $1.9 billion on last year and an increase of $9.0 billion (37% in real terms) since 1995-96. A commitment to a real increase in funding of 3% every year for the next ten years means the Budget is on track to grow to $26.7 billion by 2015-16.
This provides the Government with the ability to plan with certainty and create a more combat focussed, better equipped, more mobile and operationally ready Defence Force, including new Air Warfare Destroyers, large amphibious ships, helicopters and the Joint Strike Fighter.
An enhanced ability to identify and respond to emerging threats, through a further $973 million over five years (to 2009-10) to strengthen Australia’s intelligence capabilities. Further resources for terrorism response, air cargo security and improved policing at major Australian airports and an increased capacity for security agencies in key regional countries.
Education skills and standards
$20.6 million over two years for the Reading Assistance Voucher programme. This provides access to a $700 voucher for reading tuition for parents of those children not meeting national minimum literacy standards. It is estimated that this year, around 17,500 students will not meet this benchmark. The Reading Assistance Voucher programme will help these children at this critical stage in their education.
Importantly, this funding provided to State Governments, since 2004, has been conditional on the States addressing priorities for higher standards and values, including Plain English Report cards, publicly available information about school performance and explicit teaching of values in schools
Further encouragement for apprenticeships with an additional $106.7 million funding over four years for New Apprenticeships Centres that provide information, administrative services and support to employers and their New Apprentices.
Families
Since 1996, the Coalition Government has doubled assistance to families through the Family Tax Benefit system.
The Large Family Supplement will be expanded from 1 July this year to include families with 3 children. This payment of an extra $248 per year will provide additional assistance to nearly 350,000 Australian families.
Healthcare
The Government spent $20 billion in 1996-97 when we were first elected and this Budget provides the $1.9 billion the government will spend over five years to significantly improve service delivery for with mental health concerns.
Some of these incentives are:
- Better access to radiation oncology services for Australians with cancer, especially in non-metropolitan areas.
- Continued bulk-billing incentives for GPs in areas of workforce shortage and where bulk-billing rates are lower than average.
- Increased availability of new innovative drugs on the Pharmaceutical Benefits Scheme (PBS). Since the last budget the Government has provided over $750 million for new drugs including the treatment of colon cancer, breast cancer, heart failure and high blood cholesterol. These drugs are expected to benefit over 350,000 Australians.
- More training for doctors and nurses including the provision of 400 new medical school places a year, with some of the new places commencing in 2007 and the full 400 available by 2009.
- $1.9 billion to improve services for people with a mental illness, their families and carers. These services will provide families, schools and health professionals with more support in recognising and addressing mental illness as well as new assistance to people who are living with mental illness.
Almost one third of the additional health and ageing spending allocated in this Budget will go to enhance and sustain our world class medical research, with new funding for individual researchers and for leading medical research institutes.
Older Australians
A number of incentives have been announced in the following areas, $152.7 million to provide care for older patients in public hospitals around Australia and this will minimise the length of stay in hospital, avoid unnecessary admissions and improve care services.
Some of these incentives are:
- A fairer assets test. It is proposed to reduce the pension assets test taper rate to $1.50 per fortnight for every $1,000 of assets above the free area from 20 September 2007. Based on the current age pension, a single retiree homeowner could have around an additional $165,000 of assets before losing the age pension, while a couple could have around $275,000 of additional assets.
- Tax relief so that those who are eligible for the Senior Australians Tax Offset will pay
- no tax on their annual income up to $24,867 for singles and up to $41,360 for couples.
- $32 million to protect our elderly, by promoting best practice in aged care funding with around 3,000 unannounced spot checks of homes (up from 563 in 2004-05) and
- mandatory police checks for all volunteers.
Another announcement that will help local residents is the introduction of further assistance with the cost of utilities. In 2005, the Coalition Government introduced a Utilities Allowance to age pensioners while a Seniors Concession Allowance was introduced for certain self-funded retirees who do not get pensioner concessions.
This year an additional one-off payment of $102.80 will be to each household with a person of Age or Service Pension Age eligible for that allowance. A $102.80 payment will also be provided to each self-funded retiree who is eligible for Seniors Concession Allowance.
The eligibility for the Utilities Allowance will be extended to recipients of Mature Age Allowance, Partner Allowance and Widow Allowance. This payment will be made by 30 June 2006.
Roads
The Coalition Government is committed to improving our road networks to make them safer, relieve traffic congestion and help our freight systems operate more efficiently. In order to do this, the Coalition Government has a plan to upgrade roads across Australia. Ten years of responsible economic management has allowed the Coalition Government to invest $5 billion in our transport infrastructure nationwide in 2005-06 and 2006-07.
Small Business and Jobs
A major reduction in the complexity of small business tax arrangements. In April this year, the Government announced reforms to fringe benefits tax. The Budget delivers even more measures for small business, worth $435 million over the next four years, to reduce the complexity faced by small business.
Continued strong economic management keeping interest rates, inflation and unemployment low and creating an environment will assist local small businesses.
A huge cut in business tax of $3.7 billion over the next four years is given by moving to a 200% diminishing value rate on eligible business assets. This will encourage Australian business to undertake investment in new plant and equipment, to keep pace with new technology, and to remain ultra competitive.
Superannuation
The Coalition Government’s plan to simplify and streamline superannuation would increase retirement incomes for all income earners and encourage saving. The plan is a substantial investment by the Government in the standard of living of Australians in retirement.
Australians aged 60 and over who have already paid tax on their contributions and earnings would not pay tax on their superannuation benefits and would not need to disclose superannuation payments in tax returns.
The Coalition Government is determined to simplify Australia’s superannuation system and make it fairer. Australians deserve a system that will encourage them to save for their retirement and increase retirement incomes.
Individuals will have greater flexibility over how much of their superannuation they take and when they take it. People would be allowed to take their benefit as a regular income stream or leave it in the fund and draw down on it when they wanted. The pension and annuity rules would be simplified so that superannuation funds could develop products which are better suited to the needs of retirees.
Veterans
Total funding of $10.8 billion for Veterans’ services (up from $6.5 billion in 1995/96).This includes $4.7 billion for Veterans’ Health Care (up from $1.8 billion in 1996). World War II veterans have comprised the majority of the Veteran population for many years. Sadly, their numbers are now declining and the Government is increasingly providing rehabilitation services and compensation to serving members of the Australian Defence Force and those who have recently left the services.
More community nursing services to ensure that Veterans continue to have access to services that support their independence at home and avoid untimely admissions to hospital or residential care facilities. Approximately 34,000 Veterans and war widows/ widowers will benefit from the additional funding of this important community.
$500 million for the Murray
On water, the Budget delivered with a $500 million commitment to the Murray Darling Basin Commission to enable it to undertake essential works in the Basin which will enable us better to conserve water and preserve the iconic ecological sites which are the focus of the Living Murray Initiative.
This investment - for the benefit of the environment, irrigators, industry and regional communities - complements the Australian Government’s commitment of $200 million to the Living Murray Initiative, and brings the Federal Government’s total investment in the Murray Darling River system to almost $2 billion since 1996.
Given the failure of the Murray Darling Basin State Governments (NSW, Victoria, South Australia and Queensland) to agree to adequately fund essential Murray Darling Basin infrastructure work, the Australian Government investment will allow the Commission to accelerate the full range of capital works across the Basin which it has identified as necessary to ensure the river system is operating at optimal efficiency.
The $500 million injection will also fund additional projects under the Living Murray Environmental Works and Measures Programme and provide additional resources to ensure the return of 500 gigalitres per annum by 2009 for the Living Murray’s environmental flows.
The capital works which will now be possible include:
- Advancing construction of salt interception structures and systems to reduce salinity and maintain water quality for Adelaide, regional communities and irrigators;
- Completion of the sea to Hume dam fishways by 2011 to allow our native fish populations to reconnect along the River Murray;
- Maintenance and renewal of River Murray water delivery infrastructure, which is currently being run down; and
- New infrastructure to maximise the environmental benefits of water recovered for Living Murray initiatives, providing greater confidence that recovery of important ecological sites along the system can be achieved.
The Australian Government will also seek the agreement of the Murray Darling States and the Murray Darling Basin Commission to ensure that this investment of $500 million will deliver permanent improvements in governments’ capacity to manage the Murray Darling Basin system and to meet the needs of the river system and its users.
|
