Federal Budget 2019: The tax offset that doubled early

Font Size:

Tax cuts get people’s attention.

In Federal Budget 2019, Treasurer Josh Frydenberg announced that the Government was more than doubling the maximum relief for low- and middle-income earners “to ease cost-of-living pressures and stimulate the economy”.

“Immediate relief for taxpayers – in 13 weeks’ time,” he said at Tuesday’s late afternoon press conference, which appeared to be hastily aborted after media interrogation of the low and middle income tax offset (LMITO).

The move was described by senior economist at The Australia Institute, Matt Grudnoff, as politically silly.

“No one would receive a cent until July (after the federal election) and now they’re doubling it,” he said.

Mr Grudnoff said there would be no gain for those who earnt less than $30,000.

“It’s a tax for middle-income families. Those earning between $45,000 and about $90,000 would benefit the most.

“As a political move it’s silly.”

So, as a means of “providing immediate relief to ease cost-of-living pressures”, the advantages would appear to have little benefit to older Australians.

But back to Mr Frydenberg and who he thinks the tax cut would actually benefit.

“First, providing immediate relief to address cost of living pressures,” he said. “Second, protecting income earners from bracket creep. Third, abolishing an entire tax bracket, simplifying the system, incentivising and rewarding hard work.”

He said this tax relief would lift household incomes and boost spending at local businesses.

He also announced “long-term structural reform by lowering the 32.5 per cent tax rate to 30 per cent from 1 July 2024.”

“This will cover all taxpayers earning between $45,000 and $200,000 and will mean that 94 per cent of taxpayers will pay no more than 30 cents in the dollar.

“Following these changes, our tax system will remain highly progressive.”

Are you confused? Do you think this Budget all about the upcoming federal election?


Federal Budget 2019: Medicare benefits from healthy economy

It seems that a healthy economy means big health spending.

Federal Budget 2019: Super changes minor, but helpful

Retirees won't benefit much from this Budget, but those still saving for retirement may.

Federal Budget 2019: Improved access to medicines and health services

Australians will benefit from more affordable medicines and access to health services.

Written by Janelle Ward


Sign-up to the YourLifeChoices Enewsletter

continue reading


Another vaccine ruled out as second blood clot case emerges

Australia's Therapeutic Goods Association (TGA) has announced that a second case of blood clots is believed to be linked to...

Superannuation News

Super funds fight for changes to reforms

Your Super, Your Future legislation will be enacted within three months and leading players are weighing in on the impact...


Ambulance costs around Australia

There should be no hesitation when you have to call an ambulance in an emergency situation, but some people rushed...


Four tell-tale signs that you may have a blood clot

A blood clot is a clump of cells and protein in your blood. Blood clots form to slow down bleeding...


Sweet Potato and Shredded Beef Bowl

When it comes to serving a lot of people, chilli is a miracle dish. You throw all the ingredients into...

Finance News

How much you can save on electricity in your home state

As we prepare to head into the colder winter months, there is good news for those worried about heating costs...


What is thrombocytopenia, and why did it stop the AstraZeneca jab?

Anthony Zulli, Victoria University; Maja Husaric, Victoria University; Maximilian de Courten, Victoria University, and Vasso Apostolopoulos, Victoria University Australia's medical...


Ways to manage death anxiety

Winston Churchill once said: "Any man who says he is not afraid of death is a liar." But while it's...