The Government has delivered $47 billion of tax cuts since coming to office, and will deliver further tax cuts over the next four years to deliver assistance for the cost of living impact of the carbon price. These tax cuts will be delivered by rolling most of the low income tax offset (LITO) into the statutory tax rates and thresholds. From 1 July 2012, the tax-free threshold will be more than tripled from $6,000 to $18,200, and the LITO will be reduced to $445. From 1 July 2015, further tax cuts will increase the tax-free threshold to $19,400, with a reduction in the LITO to $300. Regular wage earners with incomes below the new tax-free thresholds will get to keep all of the wages in their regular pay packets, and over a million low income individuals will be freed from needing to lodge annual tax returns.