THESE are the signs of growing worries in the government’s budget: pensioners shortchanged, child care off track, fat cats jacking up wages.
Keen to make the government’s deficit worse, Finance Minister Mathias Cormann will in future raise the tax-free threshold to give the wealthiest person a five-per-cent tax cut.
”A lock-in effect is built into our tax system that you can not change,” he said on Tuesday.
The policy will cost $2.5 billion in the June budget – a boon to the National Party’s Tony Windsor and state Treasurer Troy Buswell – but saves middle-class people around $1,400.
This shows what the government’s poor choices on capital gains and the mining tax are doing to people’s finances.Advertisement Here are some of the other measures from the budget that could cause you problems:
Child care for those seeking to get into the workforce; the onus for funding: $1.7 billion a year.
Keeping the property tax free if you sell your property; it’ll be a tough ask.
Just 64 per cent of Australians will be able to deduct capital gains on their 2018 taxes from taxable income. The value of the property will also be deductible.
The property tax had been a high-tax, high-reward tax to be paid. The government’s imposition, which should have happened this year, will instead go back on to 2017 and tax most of it at 7.5 per cent and cut the top rate to 3.5 per cent.
The poorest 25 per cent of Australian households will not be taxed. The lowest earners will pay even less.Photo gallery Budget 2018
The new income test for living costs: $160 a week.
Those earning more than $180,000 a year will have to live on less than that before it affects them.See you on Wednesday for this story