Income tax relief passes federal parliament

The PM’s tax cuts have passed the Senate, with Scott Morrison describing it as the Budget Australia needed. But not every one is happy.

The federal government’s tax cuts for about 11 million Australians have passed through parliament three days after the Budget was handed down, but not every one is happy about it.

The package, backdated by two years to July 2020 and which equates to almost $50 billion in business and personal income tax cuts, was passed with the support of the Opposition on Friday.

The average income earner with an $80,000 salary will get $2160 cash back this year in an effort to stimulate the economy.

Anyone earning under $90,000 – the majority of Aussie workers – will get $1080 divided up in their pay this year and the other half when they lodge their tax return next year.

Prime Minister Scott Morrison said the government had legislated income tax relief, stimulated the economy and brought about initiatives to give businesses the incentive to invest in their future growth.

“This is real change. This is a real budget that is going to have a real impact on Australians as we come out of this COVID-19 recession,” he told reporters.

“This is the budget that Australians needed. This is the plan that Australians have needed.

“This is the plan that has been legislated, made law in our parliament, in three days.”

Prime Minister Scott Morrison says his government will never lose its passion for lower taxes. Picture: NCA NewsWire/Gary Ramage

Mr Morrison said businesses affected by COVID-19 would now not need to wait “for years and years” before getting back into profitability.

“They can offset those losses, those COVID losses, against the taxes they paid out of their profits before they came into this COVID crisis,” he said.

“(That) means they can get back on their feet quicker … they can keep more people employed … they can invest in their business … (and) importantly they can create more jobs.”

But not every one is happy. Greens Senator Sarah Hanson -Young said the cuts will only benefit the rich and meant “jobs for the boys”.

“These tax cuts predominantly go to high-income earners,” Hanson-Young said on Friday.

“Who does that mean? Men. This government has made choices today that prioritise the rich over the poor, men over women and millionaires over the unemployed.

“Tax cuts today means service cuts tomorrow. What does that mean in reality? Less health care, less funding for education, less supported funding for aged care.”

Jobs for the boys and tax cuts for the rich. pic.twitter.com/DWhkDvRIsl

— 💚🌏 Sarah Hanson-Young (@sarahinthesen8) October 9, 2020

In his budget reply speech, Labor leader Anthony Albanese promised he would cut costs for childcare, aiming to boost women’s workforce participation and reduce costs for middle income earners.

But the Prime Minister said Mr Albanese still had many questions to answer and had not released the detailed costings of his policies or explained what the changes were to the activity test.

“What I do know is that someone who is in the top 10 per cent of income earning in this country are the big beneficiaries of that plan,” Mr Morrison said.

“When we announced our childcare changes, it was focused on those on low- and middle-income earners.

“There are many unanswered questions about what the Leader of the Opposition said the other night.

“For the most part, we’ll file it under fiction. What this is, is law — our plan’s law.”

Asked about Western Australia posting a $1.2 billion surplus when the McGowan Government handed down its budget on Thursday, Mr Morrison said he wished the Labor government well.

“I wished them well some years ago when we put the GST reforms in place,” the Prime Minister said.

“The top-up payment for GST, as result of the GST reforms that the Finance Minister and I worked together on as treasurer, means that the WA budget is in surplus, and so you’re welcome, Mark.”

WA Treasurer Ben Wyatt was quick to hit back, tweeting: “But for the WA mining sector, the Commonwealth debt will be punching well through $1 trillion. You’re welcome, Prime Minister.”