IN a budget framed around the COVID-19 pandemic and the nation's recovery from its economic impacts, Treasurer Josh Frydenberg announced a tax cut of up to $1080 a year and $2160 for dual income couples through retention of the "low and middle income tax offset".
RELATED: How the Hunter fared in 2021-22 federal budget
The maximum works out at about $20 a week per person, with the Budget papers saying the maximum benefit goes to individuals with taxable incomes of between $48,000 and $90,000.
In his pre-Budget speech press conference with Finance Minister Simon Birmingham, Mr Frydenberg defended the affordability of extending the scheme.
BUDGET NEWS:
- A summary of the 2021/22 federal budget
- Who are the budget winners and losers?
- The great debt at the heart of the budget
- Multi-billion dollar mental health boost
- PM dismisses Greens' ideas to tax the rich
- Minister flags profound budget improvement
- Women's budget just a political fix: Labor
He said the "legislated" stage three of the scheme would abolish the 37 per cent marginal tax rate and cut the 32.5 per cent rate to 30 per cent, meaning that from 2024-25, 95 per cent of taxpayers would have a marginal tax rate of no higher than 30 per cent.
In a Budget speech that contained few surprises given the major measures already foreshadowed, Mr Frydenberg said tax cuts would put more money in people's pockets and business incentives would trigger a new wave of investment.
"Record funding to guarantee the essential services Australians rely on," Mr Frydenberg said.
He said an extra $1.9 billion would be spent on the COVID-19 vaccination strategy, including an expansion of GP respiratory clinics and "continuing" funding to hospitals.
Population growth has been a major driver of Australian economic output but this year's budget shows the impact of COVID on immigration and population.
Budget Paper 3 shows that net overseas migration, which added 194.000 people to a national population of 25.69 million people in 2019-20, is predicted to fall to negative 96,000 this financial year and negative 77,400 in 2021-22 before recovering to 95,900 in 2022-23 and 201,100 in 2023-24.
After widespread criticism of the Coalition's attitudes to women, an 80-page stand-alone "Women's Budget Statement" issued by Foreign Affairs Minister Marise Payne, Families and Social Services Minister Anne Rushton and Minister for Women's Economic Security, Jane Hume, promised spending totalling $3.4 billion for the "safety, economic security and status of women in Australia".
The paper said the COVID recession hit women's employment harder than men's, which was "in stark contrast to previous recessions, which disproportionately impacted male employment".
Despite the highlighted personal tax cuts, the Budget shows that individual taxpayers will contribute more than $224 billion of the government's $496 million in predicted revenues in 2021-22, compared with $85.3 billion in company and resource rent taxes, $75.9 billion in GST, $20.9 billion in fuel excise, $18.4 billion in customs duty, $15.3 billion in superannuation taxes and $4.1 billion on fringe benefits tax.
The Budget papers say 35.6 per cent of "taxpayers' money" goes on social security and welfare, with health receiving 16.7 per cent, defence 5.8 per cent and the general public service 4.4 per cent.
