Appendix C
Helping households to make ends meet
The spending power of Australian households has increased over the term of this Government. From 1 July 2010, working Australians will benefit from tax cuts for the third consecutive year under this Government. This is in addition to increased Government assistance for working families for the costs of education, child care and dental care. Older Australians will continue to benefit from this Government's substantial increases to the Age Pension and the Pension Supplement.
Projected improvement in the real disposable incomes and the net tax thresholds of different household types from 2007‑08 to 2010‑11
- (a) AWOTE is average weekly ordinary time earnings for full‑time employees.
- (b) Disposable income is the sum of private income and government cash transfers less net tax paid.
- (c) The net tax threshold is the private income at which taxes paid exceed cash benefits received.
- (d) Families with children have two, aged 3 and 8 years. Families spend enough on eligible education expenses to claim the maximum Education Tax Refund in respect of the 8 year old, where eligible.
- (e) Younger child is in long day care, two days per week at $5.70 per hour in 2007‑08 and $6.90 per hour in 2010‑11; older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.
- (f) Younger child is in long day care, four days per week at $5.70 per hour in 2007‑08 and $6.90 per hour in 2010‑11; older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.
- (g) Younger child is in long day care, five days per week at $5.70 per hour in 2007‑08 and $6.90 per hour in 2010‑11; older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.