Income tax cuts flagged to boost spending
The Federal Opposition has signalled it’s likely to support bringing forward income tax cuts by two years, to boost economic activity.
Tonight’s Federal Budget will include the tax cuts of between $1,000 and $2,500 a year for the majority of Australian workers.
Treasurer Josh Frydenberg wants to backdate those changes to July 1, in a bid to inject $12 billion into the economy through take home pay.
Anthony Albanese has indicated Labor won’t stand in the way of the tax plan, given the Federal Opposition had previously called for it to be brought forward.
“We argued that the economy was flatlining, that demand was soft, that wages were stagnant, that the economy needed stimulus,” he said.
“Our position is obviously that that has been exacerbated this year. But, we will act consistent with that.”
“It will be similar to what we did last year, and consistent. Last year, we supported stage one and stage two, including a bring forward of stage two of the tax cuts.”