In addition to the one-off tax reduction, I propose to raise the basic allowance and the single parent allowance from $100,000 to $108,000. I also propose to increase the married
person's allowance from $200,000 to $216,000. These proposals will cost the Government $1.31 billion annually.
Upon implementation of the proposals, all the major allowances and tax rates will have reverted to their 2002-03 levels. The child allowance, allowance for dependent parent/grandparent aged 55 to 59 and the deduction ceilings for self-education expenses and charitable donations will all be higher than their 2002-03 levels.