Set-off of low and middle income taxes removed in June, potentially affecting millions

According to the Bankwest Curtin Economics Center, an estimated 3.4 million Australians with taxable income of $ 48,000 to $ 90,000 will be affected by the $ 1080 equivalent Low and Middle Income Tax Offset (LMITO) ending at the end of this fiscal year. ..

Originally part of Stage 1 of the coalition government’s personal income tax plan, LMITO Introduced in the 2018-19 federal budget to reduce the tax burden on Australians with low and medium taxable income.

At the time of introduction, the government said the system would support approximately 4.5 million Australian taxpayers eligible for a full $ 1,080 LMITO and 5.6 million taxpayers eligible for a partial LMITO. Estimated.

The program was scheduled to run until the end of the 2019/20 fiscal year Expanded As a COVID-19 stimulus measure in the previous budget.

Bankwest Curtain analysts said the removal of LMITO would effectively offset the benefits of these tax standard changes for income earners of $ 48,000 to $ 90,000, and Treasury Josh Frydenberg would not decide to maintain LITMO. As long as I don’t think it will be better than 2019/20, with a 2021/22 budget.

However, a spokesman for Treasury Secretary Josh Frydenberg declined to comment on the program.

“The government has not commented on budget speculation,” a treasurer spokesman told AAP.

The May budget will be the eighth budget since the coalition government came to power in 2013. forecast Full of contradictions as treasurers face continued economic recovery from last year’s recession, rising levels of government debt raised to $ 1 trillion, and elections in the next 6-12 months. There is.

According to a survey by the Australian Financial Review, 61% of the 530 people surveyed said Treasury Secretary Frydenberg should focus on economic stimulus. By comparison, 31 percent believed he should repair his budget.

“Confidence is the cheapest form of stimulation,” Frydenberg said in an interview. The Daily Telegraph.. “I am very focused on driving the economy in the private sector, which means encouraging and enabling companies to invest and grow.”

“We are very proud of what more than 25 million Australians have achieved in the past year,” he said. “We haven’t got out of it yet, but we can see the light at the end of the tunnel.”

AAP contributed to this report.