Federal budget 2020: How much Victorians will benefit from tax cuts in the federal budget

Tax cuts will be fast-tracked for Australians in a bid to boost consumer spending and kickstart the economy after the coronavirus pandemic, with some workers to pocket up to $2430.

Comprehensive Federal Budget 2020 coverage begins at heraldsun.com.au from 7.30. Watch the Treasurer deliver the budget live in the stream above, then check heraldsun.com.au after 7.30pm for analysis from Terry McCrann, Tom Minear, Andrew Bolt, Scott Pape and news reports on what it all means for you and your family. Use our budget calculator, see the winners and losers and read the 5-minute guide. Extensive coverage continues in a special edition of the Wednesday Herald Sun.

A massive tax relief package for Australian workers will headline Tuesday’s federal budget, delivering immediate hip pocket help during the COVID-19 crisis.

Tax cuts as much as $2430 for workers earning up to $200,000 will be fast-tracked, while low and middle-income workers will also receive an extra bonus believed to be worth as much as $1000.

Josh Frydenberg will unveil the supercharged plan worth billions of dollars in an effort to boost consumer spending and kickstart the economy.

Once the plan passes parliament, it is understood the tax relief will be immediately built in to the pay packets of workers and backdated to July 1.

Treasurer Josh Frydenberg arrives at the Treasury in Canberra. Picture: Getty

Pensioners will receive a cash boost as the government focuses its efforts on growing the economy as coronavirus restrictions are eased.

The Treasurer has developed a support package for businesses which the Herald Sun understands will include new incentives to hire unemployed workers and an investment guarantee.

The budget is also expected to include:

A RECORD deficit of more than $200bn as debt skyrockets towards $1 trillion — or $39,000 for every Australian man, woman and child;

FURTHER support for Victorian road and rail projects after the Herald Sun on Monday revealed a $1.1bn boost;

MEASURES to help women back to work in a new economic security statement; and

FUNDING to cover more home care packages and ­reduce the waiting list of elderly Australians.

The second stage of the government’s long-term tax plan, legislated after last year’s election, will be brought forward and backdated to July 1 this year.

That means the top threshold of the 19 per cent tax bracket will increase to $45,000 and the top threshold of the 32.5 per cent bracket will rise from $90,000 to $120,000.

Prime Minister Scott Morrison during a Cabinet meeting with Ministers on Monday. Picture: Adam Taylor

Under stage two, those earning between $120,000 and $200,000 will get an extra $2430 in tax relief. The Herald Sun understands it will now be bolstered to deliver a bigger tax cut to low and middle-income workers as well.

Despite speculation, the third stage of the plan — when a flat tax rate of 30 per cent is applied to people earning $45,000 to $200,000 — will not be brought forward and will kick in from July 2024.

Finance Minister Mathias Cormann said on Monday if legislated tax cuts were brought forward and passed parliament, the hip pocket relief could be passed on “very quickly” by the Australian Taxation Office.

“We have a track record of always looking for opportunities to lower the tax burden on hardworking families,” Senator Cormann said.

Mr Frydenberg also flagged fast-tracking tax cuts into this financial year, saying: “We believe more people having more money in their pockets right now will help economic ­activity across the economy.”

Opposition Leader Anthony Albanese declared the government was “incapable of delivering a recovery that doesn’t leave people behind” and warned the budget would make “no attempt to rebuild a fairer Australia”.

MORE NEWS:

PUSH FOR ANDREWS’ STAFFERS TO FACE GRILLING

HOW MCG PLANS TO GET FANS BACK IN SEATS

DIRTY DEALINGS OF DISGRACED HEALTH UNION BOSS