Swan 'ticks the box' on tax return reform

The Federal Government expects 6.4 million Australians will save time and money on their tax returns by claiming a standard deduction for work-related expenses.
In a belated but widely anticipated response to one of the Henry tax review's recommendations in the 2010 budget, the Government will offer the option of a $500 standard deduction for workplace expenses in 2012-13, increasing to $1,000 the following year.
It estimates the average tax bill of the Australians who choose to take up the offer will drop by $192, while people with higher work-related deductions can choose to continue filling out an individual claim.
Treasurer Wayne Swan said the move would allow taxpayers to "throw away shoeboxes full of receipts" and simply "tick the box".
The budget estimates show the Government expects to be $608 million worse off in the first year the $1,000 deduction comes into effect.
"This means less time with the Tax Pack, more time with loved ones, and for 6.4 million Australians it also means a bigger tax refund," Mr Swan said in his budget speech.
Interest discount
The other main change to personal taxation is a 50 per cent tax discount on the first $1,000 of interest income earned from July 1, 2011.
The Government says around 5.7 million taxpayers will benefit from the measure in the first year of its implementation, particularly low and middle-income earners.
The discount will apply to interest earned on deposits, bonds, debentures and annuities and is forecast to cost $516 million in lost revenue in the first year after its introduction.
The Government has also responded to strong criticism of its First Home Saver Accounts, which have fallen well short of the take-up originally expected.
One of the main drawbacks of the scheme was that account holders had to save for at least four years before being able to access their funds to buy a house - if they bought within four years the balance of their accounts would be rolled into their superannuation.
Under the changes, account holders will still not be able to access their funds for at least four years but can then put them towards their mortgage if they buy a house in the interim rather than having them tied up in super.
Treasury is expecting this rule change will roughly double the take-up of the scheme, which only cost the Government $12 million this financial year but is expected to cost $23.6 million next year.