No post-election reduction is requested: Frydenberg | Camden Haven Courier
Josh Frydenberg isn’t looking to cut spending after the next federal election, but says the government will always strive to balance the books.
The treasurer presented a big spending budget last week that doesn’t forecast a surplus for at least the next decade.
Asked repeatedly about ABC’s Insiders program on Sunday, whether the government intends to cut spending after the election – which will take place next year – Mr Frydenberg said: We are focusing on the here and now.
“We are not looking to cut spending after the next election. We are always trying to balance the books and we have done it before and we will do it again.”
The budget spent nearly an additional $ 100 billion over the next four years, virtually wiping out the additional revenue received due to a stronger-than-expected economic recovery and soaring iron ore prices.
But the treasurer said about half of the expenses were temporary, such as extending the Low and Middle Income Tax Compensation (LMITO) for another year.
The other half is for long-term commitments to elder care, disability support, mental health and women’s safety.
Mr Frydenberg is sticking to the third stage of income tax cuts which are set to begin in 2024/25, even though they were legislated when the budget was in balance and headed for a surplus before the pandemic.
The cuts lower marginal tax rates from 32.5% and 37% to 30% and flatten the tax structure of people earning between $ 45,000 and $ 200,000, costing the budget about $ 130 billion.
“These are tax cuts imposed by law, they figure in the budget numbers and create a stronger and fairer system,” he said.
But he avoided saying if people earning less than $ 80,000 would be worse off at the end of LMITO and the third stage of tax cuts, despite being repeatedly pressed by the host of the Insiders. , David Speers.
“The tax compensation for low and middle income you speak of has been extended for a year,” replied Mr Frydenberg.
“We have used it as a stimulus measure, not as a permanent feature of the tax system. What is a permanent feature is what is legislated by parliament.”
Australian Associated Press