REMEMBER WHEN

GOLD COAST BULLETIN Wednesday, May 9, 2007

TREASURER Peter Costello launched an audacious bid to win over traditional Labor voters by putting more money into the pockets of battlers.

After $37 billion in tax cuts in 2006, essentially for higher income earners, Mr Costello widened the income tax cuts to predominantly help those people earning between $40,000 and $50,000 a year.

With a $10 billion surplus and a massive windfall from extra company taxes accumulated through the mining boom, Mr Costello’s 12th Budget also provided extra superannuation benefits for low to middleincome earners and a massive funding boost to improve literacy in schools.

The move aimed to help the Coalition, behind in the polls, to another election victory later in the year.

Low to middle-income earners were to get $16 to $21 a week in tax cuts while those on $100,000 a year would get $14 a week in tax cuts.

Seniors would get a $500 bonus and carers an extra $1000 because they didn’t benefit from recent tax cuts.

Apprentices would get $1000 to hone their skills and Australian prisoners of war in Europe during World War II would receive an ex gratia payment of $25,000.

For the fifth year in a row Mr Costello announced tax cuts that would put an additional $16 a week into the pocket of the average wage earner.

From July 1, the 30 per cent tax rate would only apply to income over $30,000, up from $25,000.

People earning between $30,000 and $40,000 a year were to get a tax cut of $21 a week,