The new income tax offset – or Working Australians Tax Offset– announced during last night’s budget is something Treasurer Jim Chalmers plans to build on in the future.
Speaking to ABC Radio National moments ago, Chalmers was asked about the distinction in this offset, which is just for wages and salaries, not for investment income, and whether he planned to build on this policy in future budgets.
“The short answer is yes … one of the most important things that we did last night with these broad and ambitious tax reforms is to begin to better align the tax treatment of people who work for a living with people who earn that, who earn their living in other legitimate ways.
“One of the issues in the tax system is that it’s become out of whack, and so that new Working Australians Tax Offset, which, as you rightly point out, is directed only at people who work, that has created a distinction. It’s effectively lifted the tax-free threshold for workers but not for others,” he said.
The WATO will provide up to $250 worth of additional tax relief on top of the tax cuts announced in previous budgets.
