CHRIS BOWEN MP
MEMBER FOR MCMAHON
ANDREW LEIGH MP
SHADOW ASSISTANT TREASURER
SHADOW MINISTER FOR COMPETITION AND PRODUCTIVITY
SHADOW MINISTER FOR CHARITIES AND NOT-FOR-PROFITS
SHADOW MINISTER FOR TRADE IN SERVICES
MEMBER FOR FENNER
Government legislation today confirms that the benefits of income tax cuts scheduled for 1 July 2016 won’t be fully implemented until after Australian taxpayers complete their tax return after 1 July 2017.
This comes in a week where the Treasurer has been shown that he had a $107 million black hole in his omnibus legislation, got rolled in Cabinet with the PM on negative gearing reform, and continues to delay legislating the Government’s superannuation package.
Scott Morrison used to talk about bracket creep like it was the great moral challenge of our time.
On Budget night he talked a big game, promising that:
‘‘From 1 July this year, we will increase the upper limit for the middle income tax bracket from $80,000 to $87,000 per year’’ – Scott Morrison, Budget Speech, May 3 2016
Labor immediately gave bipartisan support to these income tax cuts, so there was no excuse for the Government not to legislate these straight after the Budget in May this year.
The Prime Minister argued at one point that even if legislation enacting these tax cuts did not pass the Parliament prior to the 2 July election, they would be implemented “administratively” by the ATO.
1 July came and went, the election on 2 July came and went, and still no income tax cuts.
The Tax Commissioner confirmed in the Pre-election Economic and Fiscal Outlook (PEFO), that these tax cuts would not be delivered from 1 July as promised by the Treasurer, but instead would only be implemented when the relevant legislation had passed the Parliament.
Today, four months after the Treasurer promised these income tax cuts in the Budget, he introduced the legislation into the Parliament.
The legislation and explanatory memorandum confirm that Australians earning over $80,000 a year will not get the benefit of the income tax cut for the 1 July – September 2016 period until they complete their tax returns at the conclusion of the 2016-17 year.
No wonder the Government’s Budget is in such a mess and the triple-A credit rating is under threat.
THURSDAY, 1 SEPTEMBER 2016