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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
— 1 minute read

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.

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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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Miranda Brownlee

Miranda Brownlee

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

Tax&Compliance