Save
The sweeteners tipped to be in the federal budget tomorrow
As the federal government charges towards election campaign mode, tomorrow’s federal budget is tipped to be littered with tax sweeteners.
The sweeteners tipped to be in the federal budget tomorrow
As the federal government charges towards election campaign mode, tomorrow’s federal budget is tipped to be littered with tax sweeteners.
In its mid-year budget update earlier this year, the federal government had parked almost $9 billion dollars in unannounced measures.
It’s expected that these will be rolled out tomorrow, at 7:30pm, as federal Treasurer Josh Frydenberg delivers his first budget.
What’s on the cards?
A reduction of marginal tax rates or an increase in the marginal rate thresholds are looking like the most likely outcome of tomorrow’s budget.
“While individual tax cuts could be seen as being election sweeteners, there are also good reasons to give individual tax cuts right now. These reasons include the reversal of bracket creep caused by inflation,” said BDO national tax director Lance Cunningham.
“There is a good argument that the reduction of individual taxes could give a boost to GDP as it would provide more disposable income for households to spend. The alternative to increase GDP is to promote the increase of wages, but unless there is a corresponding increase in productivity, this could be counterproductive by increasing inflation. Therefore, the reduction of the individual tax rates may be the better option,” he said.
There are concerns from accounting and advisory firms, like PwC, that the propensity to up spend in an election year could have a detrimental knock-on impact in the economy.
“The concern is that, in an election year, both sides of politics will have an incentive to spend this windfall. But the projected surpluses are so small as to be mere rounding errors in the context of the total budget,” said PwC Australia’s chief economist, Jenny Thorpe.
“In a time when there is a real concern about oncoming headwinds, squirrelling some additional funds away becomes increasingly important,” she said.
Nest Egg will be bringing you federal budget coverage and exclusive coverage as news breaks.
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
