Invest
Frydenberg flags tax and JobKeeper reform
Treasurer Josh Frydenberg has opened the door to forwarding $20 billion in tax cuts, while announcing income support will remain to avoid the September cliff.
Frydenberg flags tax and JobKeeper reform
Treasurer Josh Frydenberg has opened the door to forwarding $20 billion in tax cuts, while announcing income support will remain to avoid the September cliff.
Under the proposed tax reform, middle-income earners could pocket an additional $2,565 a year, as tax changes proposed for 2022 are brought forward.
On Wednesday, 8 July, Mr Frydenberg was asked about bringing forward the second phase of the government’s tax cuts, which lifts the income threshold at which the 19 per cent tax rate applies from $41,000 to $45,000, and the rate at which the 32.5 per cent rate applies from $90,000 to $120,000.
The Treasurer said the creation of “one big tax bracket” was already clear, and cabinet will consider bringing the cuts forward in coming weeks.
“We are looking at that issue and the timing of those tax cuts,” he told ABC radio.
With consumer spending making up more than half of Australia’s GDP, the Treasurer highlighted how changing the tax rate could help the national economy.
“We are looking at that issue and the timing of those tax cuts because we do want to boost aggregate demand, boost consumption, put more money in people’s pockets, and that’s one way to do it,” Mr Frydenberg said.
Opposition Treasurer Jim Chalmers responded to Mr Frydenberg’s confirmation that the government was looking at bringing forward the flat tax rate and would be announcing new stimulus measures on 23 July.
“If they want to bring those tax cuts forward, then put a plan on the table and Labor will engage with that constructively and responsibly. If they want to bring tax cuts forward, let’s see what they intend to do,” Mr Chalmers said.
Treasurer refuses to rule out JobKeeper extension
The Treasurer did not announce whether he would extend the $1,500 a fortnight JobKeeper subsidy, which is due to expire at the end of September.
But he did flag that more income support beyond September for struggling businesses was now likely as a second wave of COVID-19 cases hit Victoria.
It follows calls from Victorian Premier Dan Andrews to extend JobKeeper or other forms of income support due to Melbourne having to go back into lockdown.
“The first thing to say is that the JobSeeker and JobKeeper programs are already legislated to the end of September. So, even with the six-week lockdown announced by Premier Andrews, that takes it out to the end of August,’’ Mr Frydenberg said.
“But after that, there’s going to be that really awkward and tough reopening measures again, which might last a couple of months past that.
“Yes, and there’s going to be another phase of income support. The details of which will be announced on July 23. We recognise that some sectors are going to recover more slowly than others. For example, the tourism sector as a result of the international borders being closed. We’ve announced a number of sector-wide specific packages for housing, for the arts, for tourism,” he said.
Mr Frydenberg thanked the banks for agreeing to extend support after concerns were raised about a September economic cliff due to the legislated end of the JobKeeper payments coinciding with the end of loan deferrals.
“The government acknowledges and thanks the banks, APRA and ASIC for their collective efforts in support of Australians who are facing financial hardship during this difficult time,” Mr Frydenberg said.
Australian Banking Association chief executive Anna Bligh said over 800,000 people had now deferred over $260 billion worth of loans since repayment holidays were rolled out back in March.
“This next phase of bank support will avoid a ‘cliff’ for customers in September and give them the breathing space they need to work with their bank and get back on their feet financially,” Ms Bligh said.
RELATED ARTICLES
About the author
About the author
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
