Australian Carbon Tax: Govt Reveals Cuts, Cash Bonuses under Soon-To-Roll-Out Tax

By : Subscribe to Erik's | April 9, 2012 8:31 AM IST

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Australians will have to pay more on home bills once the carbon tax takes effect in July this year but the federal government said these additional expenses will be erased by considerable rebates under the tax program.

Federal Treasurer Wayne Swan has announced over the weekend the incoming benefits that the carbon tax will bring to Australian households, many of which, he admitted, will have to incur additional $40 as utilities payments each month.

In exchange, however, households could offset the financial burdens by claiming tax breaks, with each family possibly collecting cuts of up to $300.

Cash bonuses will also be distributed by the government under the new tax program, Swan said, again with each family likely to get $100 for every qualified child while pensioners could claim cash payments of about $250.

"From 1 July, more than six million Australians will get a tax cut, of up to $300," the Treasurer was reported by The Herald Sun as saying on Saturday.

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"That's good news for families, because we know that, when household budgets are tight, every bit of extra tax relief helps," Swan added.

Reconfigurations that will attend the carbon tax will lead to breaks of $300 for Aussies earning an average of $80,000 each year while the planned increase of tax-free threshold - from $6000 to $18,000 - will result to virtual no tax obligations for many, the government said.

High-earning professionals, ordinary employees, part-time workers, retirees and students will all enjoy the tax benefits, Swan said.

All in all, one million Australian workers have been identified by the government as directly reaping the benefits of the pushing up the tax-free threshold, which will jump three-fold under the carbon tax.

Those earning less than $1500 each month will be excluded from paying their tax dues, according to the new tax program that the government will begin implementing by the next financial year.

In fact, the cash bonuses for most of the beneficiaries will start rolling out by mid-May, Swan said, while students will receive theirs before the end of June this year.

The federal government, according to Swan, will launch a massive information campaign that aims to sound off the tax benefits carried within the carbon tax, which has been blamed as one of the policies that contributed to the sagging popularity of the Labor-led government.

The tax awareness pitch will be funded by taxpayers' money, Swan admitted.

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