Support for low income earners and seniors

Support for low income earners

Payment of the Low Income Tax Offset (LITO) will be brought forward to deliver more timely assistance to households during the year, improving the immediate rewards for work and helping with cost of living pressures.

Currently, half of the LITO is delivered to workers during the year through pay as you go (PAYG) withholding, with the rest delivered later in their tax return. From 1 July 2011, 70 per cent of LITO will be paid when workers need it — reducing the tax workers pay through the year.

The LITO benefits low and middle income earners. Workers with income of $30,000 will get an extra $300 during the year

in their regular pay. Workers with income of $50,000 will get an extra $140 during the year.

Increasing pensions

The Government's historic reforms to pension arrangements have increased support for age pensioners.

Since the reforms began in September 2009, the maximum pension rate has increased by $128 per fortnight for singles and $116 for couples.

A new payment for POWs

Acknowledging their service, former Prisoners of War from World War II and the Korean War will receive a $500 per fortnight recognition payment from 20 September 2011.

Rewarding working seniors

From 1 July 2011, age pensioners will benefit from an improved Work Bonus which rewards older Australians who continue to participate in the workforce.

Age pensioners who work will be able to earn up to $250 per fortnight above the income test threshold before their pension is affected, providing an extra $25 million to age pensioners in 2011‑12.

In addition, the Government has established the Advisory Panel on the Economic Potential of Senior Australians, to examine how Australia can best harness the broad life experience and intellectual capital that seniors contribute.