In his first budget- also Australia's first surplus budget in over a decade, Treasurer Josh Frydenberg has announced tax cuts for middle-income earners - more than doubling the already legislated tax cuts.
Those earning between $48,000 and $90,000 will receive a tax cut of $1080. According to the Treasury documents, 4.5 million Australians will receive this amount.
While the tax relief will gradually reduce for those earning between $90,000 and $126,000. People earning between $37,000 and $48,000 will receive between $255 and $1080 and those with incomes below $37,000 will pocket up to $255.
"The Government is more than doubling the low and middle-income tax offset from 2018-19," Mr Frydenberg said in his budget speech.
"Taxpayers earning up to $126,000 a year — including teachers, tradies and nurses — will receive a tax cut.
For a single income family, this means up to $1,080 in your pocket per year. And for families on a dual income, up to $2,160."
The announced cuts will be effective this year, meaning taxpayers will be able to claim tax relief on this year's income in July.
"This tax relief will lift household incomes, ease cost of living pressures and boost spending at local businesses," the Treasurer said.
He also announced an increase in the instant asset write off for small and medium businesses from $25,000 to $30,000 and expanding the scheme to businesses turning over up to $50 million annually.
Prime Minister Scott Morrison must take the country to an election before the end of May, so the Treasurer is promising tax cuts and infrastructure spending and still delivering the surplus.
The Government will need the support of Labor in order to pass the budget through parliament. But Labor leader Bill Shorten slammed the budget and said a surplus was at the cost of the disability sector.
Greens leader Richard Di Natale said the budget fails to set up Australia for the future.
Senator Di Natale has told the ABC if Labor wins the next election, the Greens will be making it clear what they want to see changed.
"We've got nothing in this budget to address homelessness which is a scourge on this nation. People on Newstart are condemned to living a life of poverty, nothing in his budget. We will be pushing Labor every step of the way to address income inequality by increasing Newstart at least 75 dollars a week, by addressing those tax income scales so we have a progressive taxation system, not one that benefits the super-rich. By fixing the tax avoidance industry. We don't have a tax system, we've got a tax avoidance system. 11 billion dollars a year in tax avoidance, they're the things we'll be taking to a Labor government," Senator Di Natale said.
Treasurer Frydenberg says this Budget delivers on the promises made in previous Coalition Budgets, taking the country's accounts back into positive territory and putting Australia back on track.
