Wayne Swan uncovered that 6.4 million taxpayers would prevent an average $192 in tax by choosing for a $500 standard deduction for work-related expenses in the scheme's first operation year. The deduction doubles touching $1000 in 2013-14.

Mr. Swan told parliament that the Rudd government attempts were diverted towards a 'tick and flick' system of pre-filled tax returns by unveiling the new system of standard deductions for those who preferred to opt in.

"We have decided to provide taxpayers with the choice of a standard deduction instead of the hassle of shoeboxes full of receipts and the cost of professional assistance,'' he added.

In addition, Mr. Swan has also revealed a reduction in the tax payable on bank interest, a step widely undertaken in the wake of the Henry tax review 10 days ago.

From the period of July 1 to the next year 5.7 million depositors will fetch a 50 per cent tax discount on the first $1000 of interest accrued over a year.

Mr. Swan posted that the global recession had not restricted the government from continuing with its program of personal tax cuts, this budget offering the third round of reductions.