Middle income families are the key winners in this year’s Federal budget. With a new seven year personal tax plan the central pillar of the document. But the opposition says, results are not coming quick enough.
Lauren Reddiex reports.
Treasurer Morrison was upbeat in parliament as he announced the 2018 Budget.
Scott Morrison, Treasurer: “A stronger economy, more jobs, guaranteeing essential services, the government living within its means.”
The main feature an overhaul of the income tax system, designed to protect the benefits of overtime.
Scott Morrison, Treasurer: “This means more working Australians paying lower taxes in every extra dollar they earn. There must be reward for effort.”
Under the plan Australians earning up to $125,000 a year will be eligible for a tax offset.
Those with an income between 48 and $90,000 will enjoy the maximum offset of $530 a year.
Scott Morrison, Treasurer: “This tax relief means filling up your car six times, it means a quarter’s electricity bill, it means your school uniforms and books for your kids to go to school.”
The opposition says it will back initial tax cuts, but has labelled the plan a hoax and there’ll be no real tax relief until 2024.
Chris Bowen, Shadow Treasurer: “They’ve given up. This is a government, a prime minister and treasurer desperate to try and claw back their political goodwill.”
The government announced an early return to surplus for the 2019-20 financial year.
At 2.2 billion Labor says the surplus is “wafer thin” and doubles down with the corporate tax cuts.
Bill Shorten, Opposition Leader: “He’s giving away $80 billion to the top end of town and in the meantime cuts to schools and hospitals and pensioners are being baked into the budget.”
Other key features of the budget include funding for 14,000 extra aged home care places.
A 10 year rolling infrastructure plan worth $75 billion.
$294 million for upgrading airport security and $24.5 billion over 10 years for needs based school funding.
On the income side, the government will generate $35 billion in new revenue through stronger global economies.
And cutting down on the tobacco black market and cutting the number of foreign doctors by 200 a year.
The Budget provides that only 14 billion of this new revenue will be spent, leaving plenty in the tank for an election battle.
Lauren Reddiex, QUT News.