Tax reforms mean workers don’t have to fill out a tax return if they earn less than $18,200 a year.

Thousands of part-time workers across Australia, made up mostly of women, will now be exempt from having to submit a tax return if they earn less than $18,200 a year, as part of new reforms to the tax system.

ACTU President Ged Kearney said unions were pleased that the federal government was tripling the tax free threshold to $18,200 a year, meaning more Australians – especially women – would be encouraged to work.

Ms Kearney said based on the government’s calculations, 450,000 Australian part-time workers would now be better off.

“We know that there are thousands of women who want to work and make a vital contribution to the workforce, but income tax and the cost of child care eats into their wage, making it difficult for them to do so,” Ms Kearney said.

“Sixty per cent, or 300,000 of these, are women who work part-time. Unions do not often support tax cuts because we recognise they ensure Australians have access to decent education, health services, roads and other vital infrastructure.

“But we recognise this initiative will help people move from welfare to work, as well as help people who work part-time, particularly women. Unions are pleased these reforms will lift workforce participation. We are also pleased the tax reforms will encourage economic growth, through more Australians earning better incomes.”

Ms Kearney said the reforms would build on the government’s initiatives contained in the 2011-12 budget, designed to get more Australians into work, improve skills and create long-term opportunities for some of our community’s most disadvantaged people.

“These new measures will complement the budget initiatives, which included the allocation of $3 billion over the next six years towards skills, training and productivity,” she said.

For more information on the tax cuts please click here.