Now that the election is over, it is probably worthwhile to summarise what was promised in respect of tax changes.
The major tax promises made included:
* significant cuts in personal tax rates for those individuals whose taxable income is less than $180,000 by the year ended 30 June 2011. Labor also has an ‘aspirational goal’ to further reduce rates by the year ended 30 June 2014 so that there will only be a three tiered scale of marginal tax rates
* the introduction of a 50 per cent education refund for the costs of laptops, personal computers, software and internet costs used by students. The refund will be capped at $375 and $750 respectively for eligible primary school and secondary school students, and will only be available for families who receive Family Tax Benefit A
* an increase in the child care rebate from 30 per cent to 50 per cent on out of pocket child care costs which will be paid every 3 months rather than annually. The maximum rebate available will be lifted to $7500 annually per child
* the introduction of housing affordability credits and the introduction of a first home saver account scheme