Scott Morrison’s big election promise to cut taxes by $1080 a year delayed

A key part of the PM’s election success was tax cuts of more than $1000. But now it’s been revealed the promised cuts could be delayed.

Prime Minister Scott Morrison has been forced to admit his key election promise, offering Aussies a $1080 tax cut, could be delayed by a year as formal processes block his big plan.

Appearing on Sky Newslast night, Mr Morrison said he was waiting for the election writs to be returned to federal parliament — a bureaucratic process that might not be completed before June.

“We obviously have to wait for the writs to be returned and there is a formal process for that,” Mr Morrison said last night.

“At the moment, it is not looking like until the back end of June so that really does make very narrow that opportunity to do it before June 30, and I think that is very unlikely with the advice I have received.”

Scott Morrison told Sky News his promised tax cuts may be delayed.

Mr Morrison was hoping to push through the law quickly, so the tax cuts could be applied to tax returns lodged this financial year.

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Mr Morrison and Treasurer Josh Frydenberg will meet in Sydney today to discuss the economy and tax cuts amid concerns the government won’t be able to get its tax cuts through parliament by the end of the financial year and ready for payment from July 1.

The writs can only be returned to parliament until after an exhaustive vote count has been completed.

With two federal seats still sitting on a knife edge, voting has continued and made it impossible for parliament to start.

The results for the last seats could go down to the wire, further delaying the return of the writs.

Mr Morrison has another hurdle to jump before passing the tax cuts as he waits for key crossbench senators to pledge their support for the plan.

One Nation and the Central Alliance have already expressed concern about the $158 billion tax relief package.

The Australian Greens held onto all of their six Senate seats in the election and party leader Richard Di Natale says the minor party won’t support the income tax cuts.

“We had millions of Australians voting for parties like the Greens in the Senate to hold this government to account, and we’ll do that,” he told ABC radio’s RN program.

“We’re not going to support tax cuts to people on half a million dollars ... if any support is going to be given it needs to be targeted at people on low incomes.”

The tax offset will allow people earning between $48,000 and $90,000 to score a rebate of up to $1080 on every ATO tax return.

The promised cuts were a key feature of the Coalition’s election campaign as the party promised to give a two-person household an extra $2160 a year.

The Coalition’s promised tax cuts formed a big part of their election campaign. Picture: Saeed Khan

The Coalition also promised to continue legislated tax cuts over the coming three years.

The government also needs parliament to resume quickly to pass laws approving other extra spending in the budget, and has promised to create 1.25 million new jobs over five years.

The election win earnt Mr Morrison high praise from his former rival for the Liberal leadership, Home Affairs Minister Peter Dutton.

He remains confident that he wouldn’t have kept his seat on Saturday if former prime minister Malcolm Turnbull has been his boss.

“Scott Morrison has demonstrated leadership since last August that Australians were crying out for, and I think they have made the right choice,” he told ABC’s 7:30 yesterday.

“Now it’s for us to get back to work and concentrate on the years ahead, and that’s exactly what I intend to do.”

— With AAP