
Why so unfair?
Unfortunately for many low income earners, the way that the government’s budget has been set up, these or situations similar to this are often ones that people like Brian are faced with throughout their life.
The new tax system according to the federal budget generally helps those in the higher incoe bracket. Those who earn $87,000 or more will get at least $315 a year in relief from July, because $7000 of their earnings will be taxed at 32.5 per cent instead of 37 per cent. Those in the top echelon of earnings, earning 180,000+ will get a further reduction in the tax they pay when the budget repair levy is introduced
Those hardest hit are lower-income parents with teen children, although all those receiving Family Tax Benefit (FTB) payments lose out as the Government bids to make its welfare assistance “sustainable”.
Take the case of Duncan who gained infamy on Q&A when he questioned what the government was doing for low income earners and their tax free threshold. Storrer explained for people in the top earning bracket in Australia, that extra $7,000 goes somewhat unnoticed, but for low income earners, that money is “lfie changing”. As is the case here with Brian, supporting our low income earners would mean that Brian can ensure food is on the table every night, AND he can take his kids out to the movies.