Tax compensation could be extended in the May budget | Camden Haven Courier
Millions of Australians may not lose a tax advantage after all when Treasurer Josh Frydenberg hands in his budget.
The Low and Middle Income Tax Compensation (LMITO), which is worth up to $ 1,080 and benefits people with taxable income between $ 48,000 and $ 90,000, ends in June.
But media are suggesting that this bonus will be extended for another year at a cost of around $ 7 billion.
The treasurer avoided confirming whether this will be the case on May 11 at the request of reporters in Perth.
“The coalition is still the party of lower taxes,” replied Frydenberg.
“This is our record and will continue to be the message and the policies we adopt going forward.
Tax compensation was put in place as a one-off economic stimulus measure during the coronavirus pandemic.
Analysts at the Bankwest Curtin Economics Center estimated that about 3.4 million taxpayers – 50% of whom were women – would lose out if they were abandoned.
Tax compensation can be claimed when people file their tax returns.
But Cassandra Goldie, CEO of welfare organization ACOSS, warns of further tax cuts, saying they will undermine the ability to fund quality services that Australians rely on.
“We need to create new decent jobs in the community service sector, which is 80% female, so that we can properly deliver important services such as elder care, disability, mental health services. , homelessness and domestic violence, ”said Dr Dit Goldie.
The media have suggested the government implement a $ 10 billion elderly care program as a centerpiece of the budget, in response to the royal commission on the sector.
The surge in the price of iron ore suggests that the budget will be much better than it was just six months ago.
The price of iron ore is approaching its all-time high of around US $ 193 per tonne.
In the mid-year budget review released in December, the Treasury based its revenue forecast on a price of just US $ 55 per tonne.
“We have always been conservative with the price of iron ore,” Frydenberg told reporters.
“Obviously, there has been a greater increase in Commonwealth revenue taking due to the rise in the price of iron ore.”
Typically, for every US $ 1 increase in the price of iron ore, the government earns $ 250 million in revenue per year.
This week, the government announced more than $ 1 billion in climate change initiatives – the latest investment of $ 565.8 million for international collaboration on low-emission technologies.
Scott Morrison says it will help create up to 2,500 jobs by supporting low-emissions technology partnerships internationally and initiatives by co-funding research and projects.
“These partnerships mean Australia will continue to lead the way in low emission technology, which also means more jobs here at home,” the Prime Minister said.
The announcement came the day after the government announced it would invest $ 263 million in carbon capture and storage and an additional $ 275.5 million to set up regional hydrogen hubs across the country. .
Australian Associated Press