Prime Minister dodges crucial tax question

Scott Morrison has dodged a crucial question about how much tax low and middle income earners will have to pay from next year.

Prime Minister Scott Morrison has avoided revealing how much more millions of Australians will be paying in taxes when the low and middle income tax offset (LMITO) is abolished next year.

A report from Bankwest Curtin Economics Centre found all households earning less than $90,000 will pay more in tax when LMITO ends.

This is true even when the Coalition’s promised stage three tax cuts come into effect in 2024-25.

This means more than 10 million households will face a tax hike from 2023.

Earlier this week, Mr Morrison promised no new taxes for the next four years if he is re-elected as Prime Minister.

When asked on Wednesday about the looming tax increase, Mr Morrison said the LMITO was always going to be a temporary measure.

“That was a temporary measure that was set out in budgets and legislation,” he said from the seat of Capricornia in Rockhampton.

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Prime Minister Scott Morrison meets with deputy prime minister Barnaby Joyce in the Seat of Capricornia Rockhampton, QLD to give a speech. Picture: Jason Edwards

“We are not changing any of that legislation, we are not introducing any legislation to do that. That is a standing feature of the tax system.”

The PM then sidestepped a question from news.com.au about how much more tax low and middle income earners will face on average when the LMITO is abolished.

Instead of revealing how much of a tax hike is on the cards for millions of Aussies, Mr Morrison went on to speak about his party’s promise to keep tax rates low.

“What Australians will always face under our government is lower taxes,” he said.

“Over the course of the next term, because of what we have already legislated... means that the highest marginal tax rate that Australians will face, 94 per cent of them, is a tax rate no higher than 30 cents in the dollar.”

Scott Morrison was at a press conference with Michelle Landry visiting seniors at Hummingbird cafe in Rockhampton. Picture: Jason Edwards

Mr Morrison then took a jab at Labor, claiming people earning $90,000 a year will be $50 worse off per week under an Albanese government.

“That’s why I can say that under the coalition government, we can back our Lower Tax Guarantee because we have delivered lower taxes,” he said

“Labor fought us tooth and nail every step of the way, (they were) dragged kicking and screaming.

“We want to ensure that you keep more of what you earn. And the other part of our no new taxes and lower taxes guarantee, we will keep the speed limit on taxes.”

Originally published as Prime Minister dodges crucial tax question