When Victorians can expect to receive their tax cuts
Tax cuts are one step closer to putting money in the pockets of Victorian, with the budget measure fast-tracked through parliament. This is when you can expect to receive your cash.
Victoria
Don't miss out on the headlines from Victoria. Followed categories will be added to My News.
Tax cuts will put more money in the pockets of Australians within weeks after $17.8bn in extra relief was fast-tracked through parliament.
The budget plan, approved by the Senate on Friday, means workers earning $50,000 to $85,000 will keep about $20 more each week, while those on higher wages will keep up to $50 a week.
Millions of middle income workers will then receive a $1080 bonus when they complete their tax returns from July next year, along with a lump sum covering the backdated tax cut to July 1 this year.
The package which passed the Senate also included the $26.7bn business investment allowance and $4.9bn for companies to write-off their losses during the coronavirus crisis against earlier profits.
Scott Morrison said the swift implementation of the key budget measures showed “how serious we are about making this real for Australians”.
“This is a real budget that is going to have a real impact on Australians as we come out of this COVID-19 recession,” the Prime Minister said.
“This is the budget that Australians needed … We know they need that support now.”
The Australian Taxation Office will implement the reduced tax rates next week.
“Following this, employers will need to make adjustments in their payroll processes and systems in order for the tax cuts to be reflected in people’s take home pay,” it said.
“This means that some people may notice the tax cuts reflected in their take home pay within a few days or weeks, while for others it may be longer.”
It came as new research from the National Centre for Social and Economic Modelling, based at the University of Canberra, cast doubt on whether the tax cuts would deliver the economic stimulus required as higher income families received a larger benefit.
Professor Robert Tanton said low income families “spend more of any increase”.
“Tax cuts are an important and legitimate fiscal strategy for government, but the evidence shows that if they are to be a tool for stimulus, they need to be directed more to low income families,” Prof Tanton said.
“This sort of strategy could be achieved by a higher low income tax offset than is in the current tax cuts, in conjunction with an increased payment to the unemployed (JobSeeker) allowance, which will reach unemployed families currently struggling to make ends meet.”
Mr Morrison said he would “like people to be spending it” but that it would be “rude to say to any Australian how to spend their own money”.
MORE NEWS
WHEN YOU WILL ACTUALLY POCKET TAX CUTS