Tax cuts for low and middle income workers closer
Tax relief of up to $1080 is a step closer for more than 700,000 South Australians. See what needs to happen for the Government’s tax reforms to pass tomorrow.
More than 700,000 South Australians will receive tax relief of up to $1080, if the Government’s income tax reforms pass tomorrow.
Centre Alliance will today meet with the Coalition to further discuss measures to reduce domestic gas prices – before confirming its two votes needed to pass the tax plan in the Senate.
Labor was last night set to fail in its bid to pass amendments in the House, before it was expected to support the Government’s three-stage package in full.
The Opposition, which wants stage two brought forward from July 2022 to this year, and a decision on stage three deferred, will again try to split the Bill in the Senate tomorrow.
Treasurer Josh Frydenberg has accused Labor of standing in the way of the tax cuts, as Australian Taxation Office figures reveal three of the five lowest taxable electorates in South Australia are held by Labor.
“Someone with an average taxable income of around $60,000 would be more than $15,000 worse off over the decade,” said Mr Frydenberg, if the tax cuts weren’t passed.
Workers in Nick Champion’s electorate of Spence, in Adelaide’s northern suburbs, had the lowest average taxable income of $59,939 a year, followed by those in Amanda Rishworth’s southern suburbs seat of Kingston, and Tony Zappia’s seat of Makin in the inner north.
Earlier yesterday, Labor leader Anthony Albanese said the shadow cabinet would make the final decision about supporting the package in full.
“What we are going to do is to fight for making this package better for the economy and also fairer,” Mr Albanese said.
The Government has a majority in the House to pass the tax cuts but needs four of six crossbench votes in the Upper House to get it over the line.
SA Senator Cory Bernardi will back the reforms but independent Senator Jacqui Lambie is yet to state her position.
The Tasmanian Senator chatted happily with Centre Alliance in the chamber, before being sandwiched between Senators Rex Patrick and Stirling Griff as Governor-General David Hurley opened the 46th Parliament.
Senator Lambie is understood to have met with the minor party – which has promised not to talk publicly about her position on issues – at least three times between Monday and Tuesday.
This morning she indicated she may back the $158 billion package if there’s a “safety procedure” to protect the economy.
Senator Patrick said it was “very close” to reaching a deal on measures to cut domestic gas prices. He hopes today to work through details such as performance measures, transport costs through pipelines, and timing.
Members of both major parties have been told to be available late into tomorrow night to ensure the Bill passes.
People who lodge their tax returns this week are expected to “swiftly” receive the offset, while those who lodge it next week would receive it immediately.