Tax cuts will help economy: Swan

The Federal Government has introduced a new wave of tax relief measures that will come into play from today, which will help businesses face the global recession and boost the economy, says Treasurer Wayne Swan.

Income tax cuts, refunds for education expenses and increased childcare benefits will work as a new stimulus for the economy, on top of the one-off welfare and tax bonuses handed out earlier in the year.

Starting the new financial year, the 30 per cent marginal tax rate threshold will rise to $35,001 from $34,001, the 40 per cent marginal tax rate will be cut to 38 percent and the low income tax offset will rise to $1,350 from $1,200.

Swan said the new tax relief will mean more money in the pockets of Australian workers.

“This will help stimulate economic activity, supporting Australian businesses and jobs in the face of the worst global recession in 75 years.”

Among other initiatives, families can claim up to $750 for education expenses, while childcare support and the baby bonus will increase.

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