FEDERAL BUDGET ALERT: Tax relief on its way


The Federal Government will tomorrow unveil a reshaping of its already legislated tax plan, with tax cuts favouring low- and middle-income earners to be brought forward.

This will be on top of the $530 tax offset to be received from July 1 for the 4.4 million workers earning between $48,000 and $90,000 that formed part of phase one of the plan.

Those on incomes between $37,000 and $126,000, or about 10 million Australians, will receive tax relief in tomorrow's Budget.

On this basis, a mooted "bring forward" of phase two of the Coalition's tax plan, which would increase the 32.5 per cent tax bracket from $90,000 to $120,000, will not happen.

As one Coalition figure put it, the Government wants to avoid a "top hats versus hard hats" political argument that plagued former Liberal prime minister Malcolm Turnbull in the 2016 election campaign.

NOTE: Westmount clients will receive a Federal Budget summary soon after tomorrow’s Budget has been delivered.

Rick Maggi