The Treasurer has used Tuesday’s federal budget to unveil surprise pre-election tax cuts.
Albeit small ones that will barely get you a cup of coffee.
Low and middle income earners will see around $5 extra week back in their pocket in 2026-27, rising to $10 from 2027-28.
The measure will cost the budget around $17 billion over the next four years.
Jim Chalmers describing the tax cuts as a “top-up” to the ones already implemented.
“The average earner will have an extra $536 in their pocket each year when they’re fully implemented,” The Treasurer said.
“Combined with our first round of tax cuts this is $2190.”
The Coalition has confirmed it won’t support Labor’s tax cuts describing them as a “cruel hoax”.
However Opposition Leader Peter Dutton is expected to use his budget-in-reply speech on Thursday night to unveil his own tax policy.
The big spend on tax cuts comes despite growing debt and deficits outlined in the budget.
The deficit is forecast to hit $42.1 billion next year, while gross debt is forecast to balloon to $1.2 trillion in 2028-29.
The Treasurer also used his budget speech to confirm $1.2 billion dollars for recovery efforts following Tropical Cyclone Alfred.
The rest of the budget had largely been announced already including an extension of energy rebates, free childcare, cheaper PBS medicines, bigger investment in Medicare and fee-free TAFE places.
