04 Jul 2019
Australia’s tax system is about to go through some major changes, after the government, led by Prime Minister Scott Morrison, gained the majority of votes in a legislative election.
The new legislation will save around A$158 billion (S$150 billion) from income tax to more than 10 million workers. Morrison had promised an income tax relief during his campaign to get re-elected as Australian Prime Minister. The proposed law was backed up by four independent senators from minor parties. Finance Minister, Mathias Cormann, speaking in Canberra said,’ Today there's very good news for millions of working Australians who will get to keep more of their own money.’
The deduction in income tax will have been implemented by the year 2024/25, with 94% of the Australian population saving 30% of tax or less. It also allows low- and middle-income earners to receive at most, A$1,080 back.
Philip Lowe, Governor of Reserve Bank of Australia suggested the government resorts to other actions to find union corruption, such as more investment in infrastructure and structural reforms. He said, ‘There are options other than monetary easing for putting us on a better path…We will achieve better outcomes for society as a whole if the various arms of public policy are all pointing in the same direction.’