As it has become clear from the Federal Budget of Australia, people belonging to low and middle-income strata will be able to get a tax reduction of close to $10 every week. The treasurer Scott Morrison made the tax offset twice from $445 to $1000 and has had to listen to the comments like the tax decrease offered by government will only be sufficient for a milkshake and a burger.
As reported by ABC, currently the low-income tax offset applicable for people with income $37,000 annually slowly decreases till the income value of $66,667. However, Scott Morrison is believed to take this up to those with annual income of $90,000. This, in turn, will result in an excess $10.50 every week for people on maximum advantage, and will cost government close to $4-5 billion every year.
In a conversation with the news agency Nine News, when inquired if the tax reduction will only be sufficient to purchase a milkshake and a burger, Morrison stated that he would not say that these are huge tax cuts. He also said that providing that kind of tax cut would not be a wise thing to do and that people will be provided with what is affordable, real and in the limits of the feasibility for the central Budget. This tax cut will come into effect from July 1, 2018.
The finance spokesperson for the opposition, Jim Chalmers made it clear that the opposition – Labor party will cooperate with this tax reduction and stated that no changes in income tax in budget can cover the damage imparted to families by the ruling government in last five years. He said that these changes will not certainly nullify the anguish caused to the subjects by the ruling Liberal Party, especially since the budget of 2014.
Beth Gordon is a financial reporter, focusing on technology and national security. Before joining Shouzy, Beth worked as a staff writer at Fast Company and spent two years as a foreign correspondent in London. Her work has been published on NPR, Business Insider, Medium and many other outlets.