Fed: Costello shoots down family tax break plan

AAP General News (Australia)
12-12-2003
Fed: Costello shoots down family tax break plan

Treasurer PETER COSTELLO has shot down a backbench plan to give working families a
$1,200-a-year tax break labelling it as misguided.

Coalition MPs have developed a $1.7-billion proposal to double the tax-free income
for parents to $12,000 if they have two or more children.

But Mr COSTELLO's criticised the plan saying single-income families will be worse off
because family tax benefits already mean some don't pay tax until they earn $40,000.

Mr COSTELLO says single-income families have tax-free thresholds up to about $22,000
and families sometimes don't pay tax until their income gets to about $40,000.

But Liberal backbencher ALAN CADMAN is standing by the plan, which would allow the
secondary income earner to earn $230 a week before paying tax, saving about $1,200 a year.

He says predictions of a bumper Budget surplus mean there is money available for tax reform.

Prime Minister JOHN HOWARD says he'd like to deliver tax cuts but refuses to outline
any details until Budget time.

AAP RTV kmh/sb/lma/rp/swe/psm/

KEYWORD: TAX (CANBERRA)

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