Labor announces $31 billion tax-cut plan

Labor will cut tax for everyone but high income earners. Opposition leader Kevin Rudd has announced that his government would make the tax cuts promised by Prime Minister John Howard earlier this week, except for the tax cuts offered to people earning more than $180,000 a year.

Rudd will use $2.3 billion saved from deferring tax cuts to high income earners to give families who qualify for the Family Tax Benefit A a 50% rebate for education costs, up to $750, for example, for primary school students. Money spent on educational tools like laptops and broadband will be rebatable.

Another $400 million will be spent on establishing a national elective surgery strategy to reduce waiting lists.

He also announced his long term tax plan. Rudd said, at a press conference this afternoon, that by 2013 Labor will collapse the number of income rates from four to three – to 40 cents, 30 cents and 15 cents in the dollar.