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Budget tipped to deliver personal tax cut

Budget tipped to deliver personal tax cut

While the Turnbull’s government for major tax reform has largely subsided, a narrowing budget deficit may provide the government an opportunity to provide a small personal tax cut, according to Thomson Reuters.

Tax&Compliance Miranda Brownlee 03 May 2018

Thomson Reuters senior tax writer Ian Murray-Jones said the government is going to be holding off on giving away too much because they want to push through the corporate tax cuts which are going to remove $60 billion from the budget.

However, the government heads into the May 8 budget with a narrowing budget deficit, giving it a small opportunity to deliver some pre-election budget sweeteners, he said.

There has been talk of a small person tax cut, he said, on the condition that any cuts do not risk the planned return to budget surplus by 2020-21.

Thomson Reuters senior tax writer Stuart Jones said the treasurer will need to come up with something positive for the average worker.

“Don’t be surprised to see a small, but welcome, tweak to the personal tax rates and thresholds,” said Mr Jones.

Any changes he said are unlikely to be as significant as those made in 2016, when the 32.5 per cent personal tax rate threshold increased from $80,000 to $87,000.

Budget tipped to deliver personal tax cut
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