Member for Hume Angus Taylor says the Turnbull Government is committed to giving hard-working Hume families greater incentives to earn more, without being taxed more.

He said the Budget would reward more than 3240 average wage earners in Hume for doing more overtime, picking up more shifts, taking a promotion or a higher paying new job, without being penalised by paying more tax through the higher rate.

“The Turnbull Government will prevent average full time wage earners from moving into the second top tax bracket until 2019-20 by increasing the 32.5 per cent tax threshold from $80,000 to $87,000,” Mr Taylor said.

“This will mean more than 3,000 taxpayers in Hume will not have to pay the 37 per cent marginal tax rate. By pushing up the tax threshold on the middle tax bracket we’ll keep full time average wage earners on the lower rate for longer.”

The Government will consider further measures to reduce the burden of tax, as fiscal settings allow.

Mr Taylor said without this intervention, the average full time wage earner would face the second highest marginal tax rate this year and nearly half of all taxpayers would be in the top two brackets in 10 years’ time.

He said The Government would also introduce a Low Income Superannuation Tax Offset from 1 July 2017, to ensure that low income earners were not paying more tax on their superannuation than they were on their take-home pay.

“This means that 21,280 individuals in Hume earning $37,000 per year or less will effectively pay no tax on the money they contribute to superannuation,” Mr Taylor said.

“This Budget is giving hard working Hume families greater incentives to earn more without being taxed more.”