Cie Treasurer on the tax benefit for low income
Treasurer Josh Frydenberg did not rule out extending a tax benefit for low incomes, which expires at the end of this fiscal year.
However, this was not mentioned in the mid-year budget review which was released on Thursday.
Economists expect the treasurer to extend tax compensation for low and middle income by one year until 2022/23.
Otherwise, they say, the treasurer will effectively raise taxes in an election year before the so-called Stage Three tax cuts take effect in 2023/24.
Mr Frydenberg said he would have more to say about the tax measures when he tabled the budget on March 29, which was brought forward from its traditional May slot due to the likely timing of a federal election this month- this.
“At all times, the Morrison government has been focused on reducing taxes,” Frydenberg told reporters in Canberra as he presented the 2021/22 mid-year economic and fiscal outlook.
“This will be a key battle line in the next election. Labor is still pushing for higher taxes to drive out their high spending.”
Even so, tax professionals are disappointed that there is no sign that the government is undertaking major tax reform.
“The government’s position without tax reform appears to be continuing with no light at the end of the tunnel,” Lance Cunningham, BDO’s national tax technical officer, told AAP.
âBDO calls for tax reform to be firmly on the agenda ahead of the next budget and the 2022 elections in order to tailor Australia’s tax system to its goals. “