What you need to know about the latest government tax reform package

More than half of Australian households are now eligible for a $12 per week benefit, while more than two-thirds of those in the top 25 per cent of earners will see their taxes rise.

The changes, which come into effect in July, will see all Australians eligible for tax cuts between $12 and $25 a week, and the top 1 per cent in each income bracket seeing their tax bills rise by $10 a week or more.

The Government has also announced a $500-a-week “pay to play” tax relief scheme that will give the richest 1 per part of earners an extra $1,000 a year.

The Prime Minister said the reforms were needed to bring down taxes for hard-working Australians and give middle class Australians more opportunities to boost their incomes.

“We know the average Australian pays less than $30,000 in taxes every year and it is a significant burden on our economy, families and businesses,” he said.

“This is about helping those who can least afford it to pay less and help families pay the bills.”

He said the government had also introduced a tax break to help low income earners.

“That $500 per week tax relief will help some people with very difficult circumstances get on the tax roll, while others will get on to the tax rolls with a higher rate,” he told reporters.

“And the people who can afford the extra $500 a week will get it.”

Tax reliefs for superannuation accounts and business accounts will also be expanded.

The budget will also see changes to the way the Federal Government provides health care services, including a $300 increase in concessional Medicare payments for children aged five and under.

“The budget is a good day for health, and a good start to a new government and a new period of economic growth,” Treasurer Joe Hockey said.


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