Business
7 October, 2020
Federal Budget
The Morrison Government will deliver significant tax relief as part of its Economic Recovery Plan to create jobs, rebuild our economy and secure our future.
The Morrison Government, as part of the 2020-21 Budget, will bring forward stage two of its Personal Income Tax Plan by two years.
These measures include:
· the low income tax offset will increase from $445 to $700;·
· the top threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000; and·
· the top threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000.
Federal Leichhardt MP Warren Entsch said bringing forward stage two of our Personal Income Tax Plan will see thousands of Far North Queensland taxpayers get a tax cut backdated to 1 July 2020.
He said business will be supported with time‑limited tax incentives that will provide immediate expensing and loss carry-back.
“This will generate economic activity and create jobs by lowering the cost of investment,” Mr Entsch said.
“Personal income tax cuts announced in the last two budgets helped to put more money into the pockets of hard‑working Far North Queenslanders and in the process strengthen our local economy to respond to the impact of COVID-19.”
Mr Entsch said the Morrison Government will also provide additional targeted support to low- and middle-income Far North Queenslanders.
He said in 2020‑21, low-and middle-income earners will receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.
“The LMITO was to be removed with the commencement of stage two, but the one‑off additional benefit in 2020-21 will provide support to households and stimulus to the economy,” he said.
“Together, bringing forward stage two and providing the additional LMITO means thousands of Far North Queensland taxpayers will get a tax cut, with effect from 1 July this year, providing them with more money to spend on what matters to them.
“As they spend their tax cuts this will help local businesses to keep their doors open and hire more staff.”
