More than 12 million workers will receive surprise tax cuts in a brazen pitch for votes at the election due in May, as Treasurer Jim Chalmers vows to deliver a “soft landing” for the economy. Source: The Age.
But workers will have to wait until July 2026 to feel the modest benefits, due to cost $17 billion over three years, amid questions about whether the nation can afford the outlay when the Budget forecasts deeper deficits and record debt.
The moves are part of a Budget that pours $36 billion into more than a dozen big policies over the next five years – including Medicare, cheaper medicines, energy bill relief and aged care – while listing only $2.5 billion in major Budget improvements.
The Budget deficits will swell to $179.5 billion over five years, while Treasury warns of the economic dangers from a global trade war – without naming US President Donald Trump or the decision he is due to make on April 2 about another round of tariffs.
Coalition shadow treasurer Angus Taylor rejected the new tax cuts soon after they were unveiled last night, but he did not rule out an alternative Coalition tax plan when Opposition Leader Peter Dutton makes his Budget reply speech on Thursday.
Mr Chalmers defended the new tax relief as a “top-up” tax cut, after the much bigger stage 3 tax cuts last year, as he faced questions about why the Government could give workers only $5 a week – enough for a cup of coffee.
“The only way to ensure that these tax cuts flow and that we strengthen Medicare is going to be to vote Labor at the election,” Mr Chalmers said ahead of his Budget speech last night.
The federal Budget also offers a sweeping change to workplace law to make it easier for people to leave employers by cracking down on “non-compete” clauses, a move that takes on big business and sets up a challenge for the Coalition on whether it backs the change.
Prime Minister Anthony Albanese is expected to call the election within days to take Australians to the polls on May 3 or May 10.
FULL STORY
Labor’s surprise ‘top-up’ tax cut is enough for a cup of coffee – and a brazen pitch for votes (By David Crowe, The Age)
