Will there be new taxes this year? Here’s Treasurer Jim Chalmers’ response

Treasurer Jim Chalmers appeared at a press conference on Tuesday morning and addressed inquiries about potential new tax policies this year by reiterating the main focus of the federal government.

In a move that will likely be met with a collective sigh of relief, Chalmers has confirmed that the federal government will not be introducing any new taxes in this year’s federal budget, saying, ‘No, our focus is on the tax changes that we have already announced, that we have already either legislated or trying to legislate.

‘The focus for us right now is making the very generous superannuation tax concessions for people with high balances, still generous, but less generous,’ he said.

‘We have made a number of other changes. We have made it clear that when it comes to the budget, our priority is cost‑of‑living relief [and] doing that in the most responsible way.’

Aside from providing cost-of-living relief, he said they ‘have delivered 2 surpluses, a $200 billion positive turnaround in the budget and we have got the Liberal debt down from what we inherited.’

This approach to taxation is part of a broader strategy to alleviate the financial pressures faced by many, especially with the rise of prices of essentials such as groceries, utilities, and healthcare.

Peter Dutton
Peter Dutton made his own tax announcement over the weekend.

Meanwhile, Opposition Leader Peter Dutton made his tax announcement prior, proposing a different approach to addressing the cost-of-living pressures.

Over the weekend, he announced that if the Coalition is elected at the upcoming federal election, businesses with less than $10 million in turnover will be eligible for a tax deduction of up to $20,000 for staff or client lunches and entertainment.

However, Chalmers has criticised the Coalition’s proposal, saying, ‘Nothing could speak to the difference between the Labor and the Coalition more effectively than the absolute farce which is Peter Dutton’s long lunch policy.’

He drew a stark contrast between the priorities of the Labor government and those of the Coalition, framing the upcoming election as a choice between a focus on ‘workers, trainees, and tradies’ versus what he termed ‘taxpayer-funded long lunches.’

Dutton has responded to the criticism by stating that the costings for his policy will be released in due course and defending the proposal as an ‘efficient spend of taxpayers’ money.’

As the date of the federal election looms, with the latest it can be held being May 17, voters are faced with a significant decision. The contrasting tax policies of the major parties will undoubtedly play a crucial role in shaping voter preferences.

At YourLifeChoices, we understand the importance of staying informed about how government decisions affect our finances.

What could be the potential impact of these approaches on your wallets and quality of life? We would love to hear your thoughts in the comments section.

Also read: What you need to know about your taxes in retirement

Floralyn Teodoro
Floralyn Teodoro
Floralyn covers different topics such as health, lifestyle, and home improvement, among many others. She is also passionate about travel and mindful living.

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