Australia Budget 2018: Scott Morrison to introduce plan to scrap middle tax bracket in Parliament

22:06  08 may  2018
22:06  08 may  2018 Source:   abc.net.au

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May 6, 2018 Hsnews 0 Comments Budget , cuts, mammoth, Morrison , Scott , tax , Treasurer, Wont. Mathias Cormann indicates Australians in higher tax brackets will need to wait for a tax cut.

Australian budget 2018 . Measures likely to include income- tax cuts, boost in infrastructure spending and strong focus on aged care. Scott Morrison and Mathias Cormann toast with Dan Watters of Capital Brewery and Andy Orrell from Hairyman Brewery in Canberra on Friday.

Treasurer Scott Morrison delivers the 2018 Budget at Parliament House on May 8 2018.© Provided by ABC News Treasurer Scott Morrison delivers the 2018 Budget at Parliament House on May 8 2018.

The bill to flatten the tax system so that only 6 per cent of taxpayers face the top rate will hit Parliament today.

Treasurer Scott Morrison will introduce the centerpiece of his third budget which is to scrap a middle tax bracket.

His plan would leave 94 per cent of taxpayers on the lowest or middle rate and only those earning more than $200,000 would pay the top tax rate.

It will cost $140 billion over ten years.

Mr Morrison said it was evidence the Government is delivering on its promise to give a tax cut to lower and middle-income earners before big companies.

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Australian Treasurer Scott Morrison on Sunday warned voters not to expect “mammoth cuts” to taxes and reiterated his center-right government’s commitment to return the country’s finances to surplus as soon as possible. This year’s federal budget , to be presented on Tuesday

Federal Treasurer Scott Morrison has warned Australians not to expect “mammoth” tax cuts in next week’s budget . Mathias Cormann indicates Australians in higher tax brackets will need to wait for a tax cut. Mr Morrison is expected to announce a plan to reduce income taxes when he steps up to

"The economy is improving and all Australians should share in that," he said.

But the plan could struggle to be implemented beyond the first round of modest tax cuts which start from this July.

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SYDNEY/MELBOURNE (Reuters) – Australian Treasurer Scott Morrison on Sunday warned voters not to expect “mammoth cuts” to taxes and reiterated his center-right government’s commitment to return the country’s finances to surplus as soon as possible. This year’s federal budget

Australia. Updated May 06, 2018 12:37:18. Federal Treasurer Scott Morrison warned Australians not to expect "gigantic" tax cuts in next week's budget . that Mr. Morrison announces a plan to reduce the income tax when it goes up in the shipping box on Tuesday night, but the timing and

The ambitious plan to scrap the middle tax bracket would mean someone earning $199,000 a year would be paying the same top tax rate as someone earning $42,000 a year.

It would be a dramatic flattening of the of the structure of the tax system.

Shadow treasurer Chris Bowen has refused to say if Labor would vote for it, which could set up an election battle waged over personal income tax cuts.

Mr Bowen has backed the first round of tax cuts which deliver up to $200 a year for low-income earners and up to $530 extra for those on middle incomes.

"We know middle class and working class people are struggling with the cost of living — this is an overdue relief, but it doesn't make up for Turnbull's cost of living increases and cuts to penalty rates," Mr Bowen said.

Mr Morrison has insisted the entire seven years of tax cuts would be in one piece of legislation, declaring it a "complete package".

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Treasurer Scott Morrison has vowed to drive down spending in next Tuesday’s budget as part of plan to pay for new policies while handing out tax cuts for Australians on low and middle incomes.

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"We're going to legislate the whole plan, and I won't be giving Bill Shorten or Chris Bowen a leave pass to tax people more," he said.

"The plan will go into the Parliament and we will seek to have it legislated as soon as possible."

'Budget doesn't even bring home the two-minute noodles'

The Greens say they would vote against that package.

"We have a progressive tax system in Australia but now we have a fight ahead of us to keep it," Greens leader Richard Di Natale said.

He called the Government's tax strategy a "10-year plan to help millionaires and multinationals dodge their tax".

St Vincent de Paul Society's CEO, John Falzon, attacked the plan to flatten the tax rates.

He argued that cutting income tax and company taxes erodes the progressive nature of the system and "punch a massive hole in government revenue".

"If you're locked out of a job, or locked into an insecure job, tonight's budget doesn't even bring home the two-minute noodles, Dr Falzon said.

"It does, however, bring home the caviar for the corporates."

The first round of tax cuts, which will give most workers hundreds of dollars in cash in their tax return, could lead to a boom in spending.

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Prime Minister Malcolm Turnbull and Treasurer Scott Morrison in the Prime Minister's suite on Monday morning, budget eve. Photo: Andrew Meares. In Parliament on Monday, the opposition attacked the government over what it said were plans to cut taxes for multinationals and for the top 1 per cent of

Budget 2018 : Morrison set to answer the ,000 question with a big ‘yes’ to low- and middle -income tax cuts. The tax cuts are expected to apply to those in the bottom two tax brackets . Photo: AAP.

That would improve economic growth, but Mr Morrison says that has not been included when calculating future growth in gross domestic product (GDP).

"We're not making any assumptions about that."

Foreign aid, Newstart ignored

Welfare groups have slammed the budget as a missed opportunity to invest in some of Australia's most needy.

Among the budget measures ignored is the Newstart unemployment benefit, which economists, social groups and business groups had called on to be lifted.

It currently equates to around $40 per day.

ACTU President Sally McManus said she hoped Labor's budget reply speech on Thursday would include a commitment to raise the benefit.

Foreign aid has taken another hit, as the Coalition decided to extend its freeze on the aid budget's growth.

"This is incredibly disappointing when we think that overseas aid is less than 1 per cent of the overall government spend," Oxfam's Helen Szoke said.

"It's just been treated like taking money out of a bank, without regard to our role and responsibilities across the world."

Economists have cautioned the Government on expecting the good economic times to roll on.

"Scott Morrison stuck his hand under the sofa and found an additional $35 billion since December last year," PwC Chief Economist Jeremy Thorpe said.

"He spent $15 billion of it, but he saved $15 billion of it, and on that basis, the Government's claiming budget repair.

"But in fact, this is a lost opportunity to really address and further advance the paying down of debt, to save that burden on our future generations."

The seven-year tax offset plan means more than $10 a week for many .
Scott Morrison did his best at explaining the tax cuts on budget night but how many Australians understood exactly what it means to them? With talk of the Low Income Tax Offset, marginal tax rates changing, and then completely abolishing one of marginal tax rates over a seven-year plan, the only number most can remember is a $10-a-week benefit.Take a closer look at the seven-year tax plan and the cuts are much bigger, delivering tax cuts of up to $11,815 for some Australians.Before we take a look at the cheat sheet, this is the three-phase plan.

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