Hip pocket boost

By Shaun Inguanzo
TAX cuts by the Federal Government will save the average Greater Dandenong resident up to $1050 a year.
The Federal Government this week released its 2008/09 Budget with a promise of $46.7 billion in tax cuts to benefit low and middle income workers.
The median annual wage in Greater Dandenong is $33,000 and, according to Budget figures, residents earning between $30,000 and $40,000 will save between $450 and $1050 in taxes for the 2008/09 financial year.
In addition to the tax cuts, families earning up to $100,000 will now be exempt from paying the Medicare surcharge, a financial penalty for middle to high income earners who do not have private health care after Prime Minister Kevin Rudd announced earlier this week that the threshold would be moved from $50,000 to $100,000.
Senior citizens will also receive relief from the increasing cost of living, according to Treasurer Wayne Swan.
“To assist them with rising costs, the Government will provide, by 30 June 2008, one-off lump-sum payments of $500 to eligible senior Australians, $1000 to Carer Payment recipients, and $600 to Carer Allowance recipients for each eligible person in their care, at a total cost of $1.8 billion,” he said.
And first home buyers will be eligible for government contributions to their First Home Saver accounts.
“The first $5000 of individual contributions will now attract a government contribution of 17 per cent, earnings will be taxed at a low rate of 15 per cent, and withdrawals will be tax-free if used to buy or build a first home,” Mr Swan said.
“The Government will provide assistance of $1.2 billion over four years through the accounts.”
Mr Swan said housing supply would also be catered for, with the $500 million Housing Affordability Fund.
“(The fund) will help reduce the cost of providing new housing infrastructure and cut red tape in development approvals,” he said.
“And to reduce rental costs, the National Rental Affordability Scheme will encourage the construction of up to 50,000 new affordable rental properties by 2011-12, at a cost of $623 million over four years.”
Mr Swan said the Government would also empower the Australian Competition and Consumer Commission to crack down on cartel-style pricing on essential goods like groceries and petrol.
But Victorian Liberal senator Mitch Fifield said Labor’s Budget would not service the needs of local residents.
“The Budget will do nothing to meet Labor’s promises to keep grocery prices, petrol prices and home interest rates down,” he said.
“Local residents in Dandenong and Noble Park should take no comfort from Labor’s decision to raise taxes on cars, alcohol, energy, computer software, fringe benefits, passenger movements, passports, visa applications and increase the costs of private health insurance.”