The Morrison government has promised to provide tax relief to low and middle-income earners, with the Liberal Party website stating that from 1 July this year, more than 10 million workers will receive a lower tax rate and around 4.5 million will get the full $1,080 rebate.
Mr Morrison is running out of time, however, as he is unlikely to be able to recall Parliament before the end of the financial year to be able to pass the proposed tax cut.
Newly re-elected Treasurer Josh Frydenberg believes the Coalition can pass on another tax cut in addition to last year’s $580 cut it delivered for the current financial year.
“The tax relief promised in the budget will be delivered. In this year’s budget, we extended the tax offset to $1,080 for those earning up to $126,000. Now the legislation needs to be passed and the legislation will be our first priority of business once the Parliament resumes,” said Mr Frydenberg.
As the Prime Minister said, it’s not likely the Parliament will resume before the end of June because we have to wait for the RITS to be returned, Mr Frydenberg noted.
Tax break for businesses
The Coalition also promised to lower the tax rate for small and medium businesses that have an annual turnover of less than $50 million. The Coalition plans to reduce the tax rate from 30 per cent to 27.5 per cent, before further reducing it to 25 per cent.
For unincorporated businesses with turnover that is less than $5 million, a tax cut of 8 per cent has already been introduced, with plans to increase it to 16 per cent.
The Coalition is also increasing the instant asset write-off to $30,000 and expanding it to medium-sized businesses with a turnover under $50 million.