Starting 2010-11 (July 1) individuals can earn up to $16,000 per annum without paying tax (previously $11,000). This will be achieved by an increase in the Low Income Tax Offset (LITO) to $1500.

To summarise, from 1 July 2010:
· LITO will increase from $1350 to $1500
· 30% threshold increases from $35,000 to $37,000
· 38% marginal tax rate decreases to 37%
· Senior Australians receiving the Senior Australian Tax Offset (SATO) can earn (before paying income tax or Medicare Levy) $30,685 singles (previously $29,867) and $26,680 for couples, each member (previously $25,680).

[b]YOURLifeChoices Comment[/b]:
Long overdue. A disgrace that Howard Government through a period of sustained national growth did nothing to encourage Australians to save for retirement, except allowing the rich to place obscene amounts of money, virtually tax free, into their superannuation funds.