Your tax breaks are not in the bag.
First, the Coalition faces an uphill battle to win the upcoming federal election from Labor, which maintains a solid lead in the two party preferred polls.
Second — if the Coalition does pull off an upset victory — it will need to get its tax cut plans through parliament with new laws.
Which is just what Prime Minister Scott Morrison has promised to do.
Morrison promises action if elected
Labor has pounced on the Pre-Election Economic and Fiscal Outlook budget report, which revealed the need for ‘relevant legislation to be passed before the increase to the low and middle income tax offset (LMITO) can be provided for the 2018-19 financial year’.
‘If not legislated prior to 1 July 2019, the revenue cost of this measure would need to be reassessed,’ the report noted.
To Shorten and his crew, this means that the Coalition have made campaign promises to income tax cuts that they can’t deliver immediately.
But apparently, going against a promise entirely is a completely different issue (cough cough, carbon tax, cough cough).
But let’s not rehash the past. The future is all that matters now.
And in the future, if the Coalition manage to nab a victory, ScoMo insists ‘We would seek to legislate them at the earlier possible opportunity’, he told reporters in Tasmania. And why wouldn’t he, seeing as their plan will provide a better tax offset for 4.5 million Australians.
Report points to upsides of a Liberal government
According to AAP, the Coalition’s intended tax breaks will see a rise in the maximum benefit for singles of the low and middle income tax offset from $530 to $1,080. For dual income families, the offset can be as much as $2,160.
So we’re not talking chump change here. And this is all set to happen within the next election term, mind you.
So disregard Shorten’s belief that we’ll need to re-elect the Coalition twice in order to see changes.
And keep in mind the report also reiterated the budget forecast of a surplus of $7.1 billion in 2019/20.
The deficit has only been marginally revised by around $100 million to account for energy assistance payments to people on Newstart and other assistance programs.
And even the volatility of commodity prices such as those of oil and LNG are not likely to ‘give rise to a material change in nominal GDP’ says the report.
So all in all, ‘the economic and fiscal outlook for the commonwealth has not materially changed since the publication of the 2019-20 budget,’.
Not exactly something for the opposition to pounce on, then.
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