MILLIONS of low and middle-income earners in Australia are set to pocket up to $1080 when they lodge their tax returns, after the Government’s $158 billion tax cuts package passed Parliament in full overnight.
The three-stage plan passed the Senate 59 votes to nine shortly after 7pm, with the Coalition, Labor and four crossbenchers backing the package.
The Greens voted against the plan, while One Nation senators Pauline Hanson and Malcolm Roberts abstained from the vote.
ARTICLE CONTINUES AFTER THIS ADVERTISEMENT
In a joint statement, the Prime Minister Scott Morrison, Treasurer Josh Frydenberg and Finance Minister Mathias Cormann said the Government had delivered its promise “to build a better tax system and provide more tax relief to hardworking Australians”.
“As a result, low and middle income earners will keep more of what they earn and have more money in their pockets,” they said.
“This will ultimately boost household consumption, which will be good for the overall economy.
“Australians voiced their loud and clear support for our comprehensive tax package at the election.
“They supported a tax system that rewards aspiration and encourages effort, and today we have delivered it.
“Lower taxes are part of our plan for a stronger economy.”
Stage One of the plan, which Labor and independents supported, will see Australian’s earning between $48,000 and $90,000 a year receive the full $1080 tax offset from as early as next week.
Those earning between $21,000 and $48,000 will receive between $250 and $1080, while the full offset will taper off for Australians earning between $90,000 and $126,000.
Stage Two of the package lifts the top bracket of the 32.5 per cent rate from $90,000 to $120,000, and the 19 per cent rate from $37,000 to $45,000, while a third tax cut will take place in 2022.
It’s Stage Three of the package that Labor sought to scrap, which totally overhauls the marginal tax rate, flattening it to 30 per cent for anyone earning between $45,000 and $200,000 from 2024-25.
— 9News Sydney (@9NewsSyd) July 4, 2019