Article: Macarthur’s winners and losers in federal Budget
Low to middle income earners in Macarthur stand to benefit from tax breaks announced in the federal budget yesterday.
Hume MP Angus Taylor said the tax relief would be given back to hard working locals.
Treasurer Scott Morrison’s seven-year plan will include tax cuts from July 1 and the eventual abolition of the 37 cents tax bracket, so that people earning between $41,000 and $200,000 will be taxed at the same marginal rate.
In the initial phase, which will apply to the coming four financial years, 10 million taxpayers earning up to $125,000 a year will become eligible for a new “Low and Middle Income Tax Offset”, worth up to $530 a year.
The maximum offset of $530 will be given to taxpayers earning between $48,000 and $90,000.
It will apply from July 1, but taxpayers will have to wait until the end of the financial year to see the benefit when they submit their tax return.
Taxpayers earning less than $37,000 will receive a maximum tax discount of $200.
Workers earning more than $90,000 will have their tax offset gradually reduced at a rate of 1 cent for every dollar earned over $90,000, until it cuts out completely at just over $125,000.
“[Nearly 70,000] taxpayers in Hume will receive a new offset of up to $530 a year,” Mr Taylor said.
“Critically it’s a lump sum payment, and critically it’s coming straight away to reduce costs for households.
“This tax break has been made possible through frugal tax spending which means we have been able to pass the dividend onto people over the course of the seven year plan.
“The tax relief is giving families the confidence to buy goods that they need to furnish their homes for example.”
In other budget measures:
Macarthur MP Dr Michael Freelander said there were some good and bad measures in the budget.
He welcomed the tax relief measures as well as spending in the mental health and medical research sectors.
Dr Freelander, however, was disappointed there was no major spending for young people.
“My biggest complaint is that young people have been given nothing and they continue to be saddled with HECS debt and there was nothing done to improve housing affordability,” he said.
“There was also no increase to the Newstart allowance which forces people to live on $40 a day.”
Dr Freelander was also concerned there was no increase in hospital funding per capita, only funding to accommodate population increase.
He was surprised the budget did not acknowledge climate change.
“This is a pre-election budget,” Dr Freelander said.
Mr Taylor also spruiked the $20,000 instant asset write-off, which will continue for another year. The scheme helps small business owners buy more equipment.
The Hume MP also welcomed the government’s infrastructure spend and funding allocation for Appin Road and Camden Valley Way road upgrades as well as the $50 million funding of a business case for the Western Sydney North-South rail project.
“I have been campaigning for better infrastructure since I started representing this region,” Mr Taylor said.
“I challenge anyone to find another local member who has a better track record than [me].”
