The 2007‑08 Budget provides for an underlying cash surplus of $10.6 billion, the Government's tenth surplus.
Personal income tax reform
- All taxpayers will benefit from a further $31.5 billion in tax cuts over the next four years.
- From 1 July 2007, the low income tax offset will increase to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.
- From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.
Realising Our Potential
- $5 billion will be invested in a new Higher Education Endowment Fund to provide a perpetual source of funding for university capital works and research facilities.
- $3.5 billion of additional funding for education and training.
Other key initiaives
- From 1 July 2007, rates of Child Care Benefit will increase by 10 per cent on top of indexation. The Child Care Tax Rebate will be available as a direct payment shortly after the end of the year.
- One‑off doubling of superannuation co‑contribution for eligible contributions made in 2005‑06, to improve superannuation savings for low income earners by $1.1 billion.
- $500 one‑off bonus payment, to ensure older Australians share in the economic growth they helped create.
The Ministers of Budget
Peter Costello MP,
Treasurer of the
Commonwealth of Australia
Senator The Hon
Minister for Finance and Administration