Budget tax cuts worth around $30-a-week are set to be brought forward to December in an effort to turbocharge Australia out of recession.
Workers will secure a Christmas tax cut in Tuesday’s budget worth around $30-a-week on average in a surprise move designed to help beat the COVID-19 recession.
But despite speculation the Morrison Government might bring forward the more controversial ‘Stage 3’ tax cuts, it’s understood these will remain on the original 2024 time frame and not be fast-tracked. For a worker earning $50,000 a year that means that the legislated tax cut of $1080 or $20 a week will be worth around $31 a week for the rest of the financial year when the ‘catch up’ payments for the weeks since July 1 is added.
Last week, news.com.au exclusively revealed that Treasurer Josh Frydenberg was planning to backdate personal income tax cuts in Tuesday night’s budget to July 1, ensuring workers have more money in their pockets and don’t have to wait for tax relief. The tax cuts, worth $20 billion, were scheduled to come into force in 2022. The third stage of the tax cuts, with a tax rate of 32.5 per cent to apply to the vast majority of workers, is currently scheduled from 2024.
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