Australian Treasurer Scott Morrison is expected to announce a plan to reduce income taxes when the Federal budget is released today.
But the treasurer warns that Australians shouldn’t count on ‘mammoth tax cuts’ as he told Channel Nine.
While Morrison was quick to dampen any hopes of a big windfall, he confirmed that low and middle income earners are the first priority.
‘They will be what’s affordable, they will be real, and they will be within what the budget can afford.’
Finance Minister Mathias Cormann agreed:
‘What I can say to you is that we will be prioritising low and middle-income earners in the first instance, but there will be a phased approach moving forward.’
But there is also good news for Australian businesses, as Cormann confirmed 37 senators already in support of the government’s plan to reduce business tax rates by 25%. He stated that it would not make sense to keep a difference in tax rate between small and larger businesses, saying:
‘In many ways, the biggest businesses in Australia are mostly exposed to competition from other parts of the world.
‘Small business will tell you that they believe it’s very important for them and their future success that the business tax cut is applied to all businesses.’
Tax relief for higher income earners
Treasurer Morrison is also looking to cut both rates and tax thresholds for wealthier Australians, but this will only be over the longer term.
But according to Sky News, Cormann indicated that Australians in the higher tax brackets will be waiting for tax cuts.
‘We do recognise that high-income earners are carrying a very significant tax burden in our economy today.’
This only seems to be fuelling speculation the coalition will reveal several big ticket spending promises, in an effort to win over voters.
Deputy Prime Minister Michael McCormack accelerated that theory by likening Mr Morrison to Santa Claus and predicting all sorts of ‘goodies’ to be handed down in the budget.
If you’re worried about the state of your chimney, you will just have to wait and see what Santa Morrison’s budget brings you this Tuesday. With so many tax cuts on the table for Aussies and Aussie businesses, it seems likely to be good news for everyone.
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