Treasurer Josh Frydenberg has given strong indications that personal income tax cuts slated for mid-2022 will be brought forward in next week’s federal Budget, in a bid to boost take-home pay and consumer spending.
This will most likely see the 32.5% income tax threshold increase to $120,000 from $90,000. Lower-income earners could also receive extra support via the low-income tax offset increasing to $700 and the 19% income tax threshold increasing from $37,000 to $45,000.
However, a survey of 49 economists has ranked personal tax cuts way down the list of priorities, with most instead wanting the government to invest directly in social housing and permanently lifting JobSeeker:
