Budget should abolish low-income tax offset by bringing forward cuts
Instead of extending the ‘temporary’ low and middle income tax offset, Josh Frydenberg should replace it with an earlier start date for the Stage 3, 30 per cent marginal tax rate.
With two weeks to go to the budget, the informed reports, rumours and speculation have started, with one suggesting the low and middle income tax offset (LMITO) will be extended for another year.
If this is true, it is misguided, and confirms Milton Friedman’s astute observation that “Nothing is so permanent as a temporary government program”.
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Robert Carling is a Senior fellow at the Centre for Independent Studies, and a former IMF and federal and state Treasury economist.
