Tax cuts for high and middle-income earners could be wound back or delayed after Labor warned their cost had to be balanced against burgeoning budget debt and deficit, just as the Morrison government said it was fully committed to its stage three tax plan.
In this week’s budget Treasurer Josh Frydenberg extended the low and middle-income tax offset that goes to about 10.5 million workers who earn less than $126,000 a year. The one-year extension cost the budget $7.8 billion. “We need to be responsible with the budget, we need to be cautious in the commitments that we make, we’ll need to come up with our priorities and get the sequencing right. Income tax is part of that thinking,” he said.“These tax cuts don’t come in for three years. I’m not in a rush to conclude a view on those tax cuts. Our priorities are people on low and middle incomes.”
But the tax cuts also create issues for the Coalition due to their interaction with the low and middle-income tax offset. The offset, which Treasurer Josh Frydenberg said this week was not a permanent part of the tax system, delivers up to $1080 as a refund to more than 10.5 million people. All workers with a pre-tax income of less than $88,000 next financial year are affected. It is due to the tax offset being much larger than any relief lower-income earners will receive from the stage three tax cuts.
AlboMP and JEChalmers will not commit to the Stge 3 tax cuts. Labour is about higher taxes
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‘It’s a Liberal budget’: Shadow Treasurer and Treasurer reach agreement on one thing | Sky News AustraliaShadow Treasurer Jim Chalmers has hit back at political analysis claiming the Coalition’s big spending budget is Labor in style saying the cut in wages for workers makes it a Liberal budget. \n\nTreasury predicts an expected rise in the consumer price index will exceed wage growth leading to an effective wage cut as early as this financial year.\n\nMr Chalmers said the budget handed down by Treasurer Josh Frydenberg demonstrated a “deficit in vision” which would be rectified in Labor’s budget reply tonight.\n\n“Only a Liberal government could spend $100 billion in one night, rack up a trillion dollars in debt and still have workers go backwards,” he said. \n\n“I think it’s a Liberal budget in this important regard – workers actually go backwards. The core of the budget is a cut in real wages for Australian workers and I think that makes it a Liberal budget.”\n\n“What you’ll see from Anthony Albanese tonight is some of that vision and leadership that was so absent from the budget on Tuesday night.” \n\nMr Frydenberg yesterday argued the budget was a Liberal budget pointing to its focus on families, small business and the regions in addition to big spending on infrastructure. \n JEChalmers Not so fast. Garner ALL the particular details first. JEChalmers When Labor was in govt 2007-13, three out of the six years we saw a reduction in real minimum wages. Unemployment 2013 after 6 years of Labor 5.7% Today it is 5.6% Lower unemployment will put presser on wage to go UP JEChalmers An 'hindsight'er trying to analyse the future impact of the budget! Seriously?
Source: SkyNewsAust - 🏆 7. / 78 Read more »