FEDERAL Treasurer Scott Morrison handed down his third budget on Tuesday night, with income tax relief the biggest coup for Aussies.
In his speech overnight, Mr Morrison said the Government was providing the tax cuts in a bid to “reward working Australians and reduce the cost pressures on households”.
“Tonight, I announce a seven year personal tax plan to make personal income tax lower, fairer and simpler,” he said.
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“The plan will result in more working Australians paying lower rates of tax. It will be enshrined in legislation.”
Mr Morrison said the plan has three parts.
“One. Tax relief for middle and low income earners now. Two. Protecting what Australians earn from bracket creep. Three. Ensuring more Australians pay less tax by making personal taxes simpler.”
Ten million Australians are set to benefit from the Turnbull Government’s new tax cuts, with 4.4 million set to receive the maximum relief of $530 per year.
Those earning up to $37,000 will have their tax reduced by up to $200 on what they have paid in tax.
For those earning more than $37,000, their tax will be reduced up to a maximum of $530 per year.
For the 4.4 million taxpayers with an income between $48,000 and $90,000, they will also receive the maximum tax relief of $530.
“For middle income households with both parents working on average wages, this will boost their ‘kitchen table’ budget by more than $1,000 every year,” the Treasurer said.
“This means more working Australians paying lower taxes on every extra dollar they earn.”
For those earning above $90,000 the tax relief reduces to zero at just over $125,000.
“This tax relief will not be clawed back by other tax increases, including the Medicare levy, which will remain unchanged,” Mr Morrison explained.
Other important notes from the 2018 Budget:
- No more exit fees on superannuation accounts for when you want to change funds.
- Young people under 25 or with low balances will no longer have to pay for life insurance policies they have not asked for or do not need.
- The Pension Loans Scheme will be opened to all older Australians, including full rate pensioners and self-funded retirees, so they can boost their retirement income by up to $17,800 for a couple, without impacting on their eligibility for the pension or other benefits.
- An expanded Pension Work Bonus will allow pensioners to earn an extra $1300 a year without reducing their pension payments. For the first time, the bonus will be extended to self-employed individuals who can now earn up to $7800 per year.
- The National Energy Security Board estimates annual power bills will fall by $400 on average for every Australian household from 2020, following the introduction of the national energy guarantee.
- The Government’s overhaul of the child care and early learning subsidies includes an extra $2.5 billion to ensure more families get more support.
- $294 million to harden up security at airports.
Important 2018 Budget notes for Queenslanders:
- Under the fully funded hospitals agreement, Queensland public hospitals will receive $29.5 billion over the five years to 2024-25, delivering an additional $7.49 billion in funding.
- Queenslanders with a disability will be supported through a fully-funded National Disability Insurance Scheme. Once fully implemented in 2020, nearly 96,300 participants in Queensland will benefit from the support.
- While the budget has provided $1 billion for the M1 Pacific Motorway for the Eight Mile Plains to Daisy Hill and Varsity Lakes to Tugun sections, the RACQ says not enough has been done for Queensland road and rail.
“In the lead up to the Budget, the Government talked up its infrastructure spend, but for roads and rail, we’re about $400 million down on last year,” RACQ Head of Public Policy Rebecca Michael said.
“And with road fatalities in Queensland up 20 percent year to date, now’s not the time to cut road funding in favour of a Budget surplus.”
Dr Michael said the Club is now calling on the Queensland Government to work with the Turnbull Government to ensure budgeted projects received the funding required to get these projects off the ground.
“We need the State and Federal Governments to ensure we don’t lose more time, funding and potentially lives by getting caught up in a political blame game. Let’s make sure every dollar budgeted is spent this year,” she said.