Fed: Projected improvements in real incomes and tax thresholds
12 May 2009 7:38 PM
Projected improvement in the real disposable incomes and the net tax thresholds of different household types.
Dollar amounts are expressed in 2008/09 dollars, for years ending June.
Family type and wage Disposable income Net tax threshold
as pct of AWOTE
2008 2011 pct 2008 2011 pct
$ $ change $ $ change
Singles
Single person (67%) 33,390 35,831 7.3 18,976 19,971 5.2
Single person (100%) 46,475 49,122 5.7 18,976 19,971 5.2
Single person (167%) 71,648 75,459 5.3 18,976 19,971 5.2
Sole parent (0%) 27,574 28,915 4.9 52,442 56,145 7.1
Sole parent (67%) 46,913 49,950 6.5 52,442 56,145 7.1
Senior (0%) 14,938 17,491 17.1 28,847 31,538 9.3
Couples without children
1 income (133%) 61,939 64,932 4.8 33,036 34,597 4.7
1 income (167%) 73,815 77,989 5.7 33,036 34,597 4.7
2 income (100 & 33%) 64,743 68,716 6.1 35,287 36,295 2.9
2 income (100 & 67%) 79,864 84,952 6.4 35,406 37,364 5.5
Senior (0 & 0%) 24,608 26,373 7.2 46,308 54,712 18.1
Couples with children
1 income (100%) 55,967 58,947 5.3 52,442 56,145 7.1
1 income (133%) 67,373 70,861 5.2 52,442 56,145 7.1
1 income (167%) 78,808 81,089 2.9 52,442 56,145 7.1
2 income (100 & 33%) 72,610 78,093 7.6 62,302 68,570 10.1
2 income (100 & 67%) 88,527 94,342 6.6 66,106 76,064 15.1
2 income (167 & 100%) 123,404 132,250 7.2 65,385 74,857 14.5
Notes:
* AWOTE is average weekly ordinary time earnings for full-time employees.
* Disposable income is the sum of private income and government cash transfers less net tax paid.
* The net tax threshold is the private income at which taxes paid exceed cash benefits received.
* Assumed to have an average-priced hospital insurance policy and receive the private health
insurance rebate.
* Families with children have two, aged 3 and 8 years. Families spend enough on eligible education
expenses to claim the maximum Education Tax Refund in respect of the 8 year old, where eligible.
* Younger child is in long day care, two days per week at $5.70 per hour in 2007-08 and
$6.80 per hour in 2010-11; older child is not in paid care. For the calculation of net tax thresholds,
the hours of care are consistent with the income of the second earner.
* Younger child is in long day care, four days per week at $5.70 per hour in 2007-08 and
$6.80 per hour in 2010-11; older child is not in paid care. For the calculation of net tax thresholds,
the hours of care are consistent with the income of the second earner.
* Younger child is in long day care, five days per week at $5.24 per hour in 2007-08 and $6.26 per hour in 2010-11;
older child is not in paid care. For the calculation of net tax thresholds, the hours of care are
consistent with the income of the second earner.
AAP gsj/mo
