ATO: Tax cuts may get through this year

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Via The Australian:

Scott Morrison’s promised tax cuts will be delivered by the 2019-20 financial year, with the Australian Tax Office saying it can pass on the promised changes if Labor agrees to them.

There was speculation in other media outlets this morning that the tax cuts would not be passed on as the Prime Minister said parliament was unlikely to sit before June 30.

“Tax relief will be delivered in 2019-20 as promised,” a spokeswoman for the Prime Minister said. “And will not be delayed by a year by the parliament not sitting in June as speculated in the media today.”

Labor doesn’t even have a leader!

The first tranche of cuts is well timed and fair enough but the senate is right to resist the rest given how regressive they are and should get the chance to negotiate changes.

The Morrison Government should split the bill so Labor can agree to the first part without derailing the senate.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.