Money
Budget promises or election teasers? Tax cuts in the spotlight
Let’s be positive this morning and go with “well they must be keeping their powder dry” with an election due (more promises).
This budget will not be passed before then and with new positions of parliament being settled we can only speculate what will eventuate out of it or not.
Yet let us get to the highlights:
Big ticket items include a free weekly latte for all but we have to wait a year or two for it ($5 a week tax cut) and then its a two latte’s equivalent the year after that ($10).
We are treating these tax cut announcements a bit like a coffee card as bracket creep (that is inflation making us pay more taxes) we are getting a little bit of that back.
$150 energy rebate extended to end of the year (must admit we love seeing this on energy bills).
Big win
Student debt 20% reduction is huge as is a proposed increased to repayment thresholds is a big win for those carrying debts.
Bad news in the $20,000 small business asset write off is not being extended (a tax & compliance burden) into next tax year (though I am tipping an election announcement here…)
At a macro level we are back to spending more than we are earning (for the foreseeable future) with a lack of a genuine productivity and growth vision.
Its not hard – either increase our productivity, or go with a smaller government / spending otherwise we just keep creeping up the taxes on the people of Australia.
But let’s be positive as we have been right from the outset and wait on the election date announcement, and proposed policies that go beyond this weeks budget announcement.
Remaining hopeful, as ever.