Ken Henry backs tax cuts but warns budget ‘needs to be brought under control’ | Jess_Irvine
There had been, of course, all the usual speculation about tax cuts leading into the May 2018 budget, which was expected to be the last before then Prime Minister Malcolm Turnbull went to the polls.got a ‘drop’ that a multi-year tax plan was about to be unveiled. But the magnitude was downplayed. “Tax cuts to start within months, but will be small,” the headline concluded.
“Most working Australians earning above $41,000 are likely to never face a higher marginal tax rate through their entire working life,” then Treasurer Scott Morrison vowed in his budget night speech, which also predicted the budget would return to surplus in 2019-20.Turnbull was knifed by his party later that year and in Treasury’s final reckoning the federal budget was in deficit by $85.3 billion last financial year, thanks to the coronavirus pandemic.
“The key points from my perspective are that the proposed cuts improve the structure of the tax schedule and there is a need to continually provide personal income tax cuts in order to address fiscal drag.” “It’s not a good way to offer tax relief,” says the Grattan Institute’s Danielle Wood. “It’s clunky and doesn’t even help with work incentives as it’s delivered as a lump sum at the end of the year.”
“Australia relies much more on personal tax than other developed countries do because we have a high top marginal rate of tax, and because that top rate cuts in at relatively low levels of income.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ken Henry backs tax cuts but warns budget ‘needs to be brought under control’This week’s budget update predicts no budget surpluses this decade, while tipping federal debt to reach $1.2 trillion in 2024-25 the same year the government’s “stage three” tax cuts are still scheduled to begin. | Jessica Irvine Auspol Tax ATO
Read more »
Ken Henry backs tax cuts but warns budget ‘needs to be brought under control’This week’s budget update predicts no budget surpluses this decade, while tipping federal debt to reach $1.2 trillion in 2024-25 the same year the government’s “stage three” tax cuts are still scheduled to begin. | Jessica Irvine Auspol Tax ATO
Read more »
There are risks in bringing forward boosters; we need to play the long gameThe decision to stay firm on a five-month interval for boosters is based on sound reasoning.
Read more »
There are risks in bringing forward boosters; we need to play the long gameThe decision to stay firm on a five-month interval for boosters is based on sound reasoning | OPINION by Allen Cheng, infectious disease physician vaccine covid19
Read more »
Businesses need ‘certainty’ to be able to get back to pre-COVID
Read more »
Blown back to the future: the loved-loathed Smith thrust back into the spotlightAnalysis: After a tumultuous morning, Australia had to gather itself up under the suddenly restored captaincy of Steve Smith in Adelaide, writes GregBaum
Read more »