The Coalition Government’s $158 billion income tax cut bill has passed through parliament, after gaining the support it needed from crossbenchers.
Under the package, Australians earning up to $126,000 will see tax relief of up to $1080, while those earning between $45,000 and $200,000 will be taxed at 30 per cent as of July 2024.
Dominique Lamb, chief executive of the National Retail Association, called the passing of the bill the “best present retailers could have asked for to kick off the new financial year.”
“Retail has had a very slow 2019, reinforced again yesterday by average ABS sales results for the month of May,” Lamb said.
“Although these tax cuts are no silver bullet, they certainly put money straight into the back pocket of millions of Australians and should result in a much-needed boost in retail spending.”
While Labor initially opposed the tax cuts due to the third stage of the package, which takes in effect in 2024 and will benefit the wealthiest Australians, it eventually came together to vote the bill through.
Opposition leader Anthony Albanese said the party did not want to vote against giving people a larger tax return.
“The economy needs that, the economy needs that now,” Albanese told reporters, according to the AAP.
Morrison said the Coalition is following the advice of the Reserve Bank, which recommended the Government create economic stimulus through tax cuts.
Earlier this week, the Reserve Bank lowered the cash rate to 1 per cent in an effort to kick start a slowing Australian economy, which grew at a below-trend rate of 1.8 per cent over the year to the March quarter.
“Consumption growth has been subdued, weighed down by a protracted period of low income growth and declining housing prices,” RBA governor Philip Lowe said.
“The main domestic uncertainty continues to be the outlook for consumption, although a pick-up in growth in household disposable income is expected to support spending.”
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