More than half a million working South Australians would pay higher income tax and over 125,000 families across South Australia would lose family benefits under a Tony Abbott government.
Tony Abbott and Joe Hockey have this week confirmed they would increase taxes by cutting back the tax free threshold and would strip support for families by axing the SchoolKids Bonus and scrapping the Household Assistance Package.
Tony Abbott doesnt have a plan to help families with cost of living pressures, Senator Wong said.
His plan would only make it more difficult for South Australian families to make ends meet.
There are 567,000 people in South Australia who would be affected by Mr Abbotts cut to the tax free threshold from $18,200 a year to $6,000, including 47,000 people, mostly women working part time, who are currently not paying income tax at all as a result of Labors income tax cuts.
Under the Liberals, everyone who earns less than $80,000 a year will pay more tax, Senator Wong said. Most would have to pay an extra $300 a year and some would be slugged up to an extra $600 a year.
The Liberals have also said they would also axe the SchoolKids bonus which helps 96,000 South Australian families with the costs of education.
The SchooKids Bonus helps families pay for books, uniforms and stationery, and Mr Abbott wants to take this away from South Australian families, Member for Hindmarsh, Steve Georganas, said.
If the SchoolKids Bonus was scrapped, a family in South Australia with two kids would be $15,000 worse off over the life of their childrens education. (Footnote: Based on 13 payments of the SchoolKids Bonus for two children, both from Kinder to Year 12)
Tony Abbott has also said he would remove family payments under the Household Assistance Package to 125,000 South Australian families.
Why does Mr Abbott want to strip support from South Australian families? Mr Georganas said.
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Example 1
The median family income in Adelaide is $104,000. A typical family in Adelaide with two kids, both in primary school, Dad who works full time, earning $84,000 a year, and Mum who works part time, earning $20,000 a year would be almost $1500 a year worse off. Mum would pay $600 more tax, and they would lose $820 in SchoolKids Bonus and $72 in HAP payments.
Example 2
The median family income in South Australia is $118,000. A typical South Australian family, with three kids aged 7, 11 and 15 where both parents work (Dad earns $70,000 and Mum earns $48,000) would be more than $2400 a year worse off. Dad would pay $253 a year more tax, and Mum $303 a year more tax. They would lose $1640 in School Kids Bonus and $280 in household assistance payments.
Example 3
Jane is a single mum with one child, 13, and works full time in office administration. She earns $65,000 a year. Under the Liberals, Jane would be $1,283 a year worse off. Her taxes would rise by $303, she would lose the SchoolKids Bonus worth $820, and her Household Assistance Package payments of $110 for FTB-A and $50 for FTB-B.