There weren’t any new tax ideas in the 2019 Budget, which perhaps is to be expected from a six year old government preparing for an election the betting markets suggest it will lose.
Instead what we got were extensions of a few actually-pretty-big tax ideas introduced in last year’s budget: the planned elimination of the 37% tax bracket, the Low and Middle Income Tax Offset, and the immediate expensing of investments for businesses.
Given the looming election it’s worth examining each of these three ideas, which I will do over the next few days.
First, eliminating one of the tax rates. At the moment the income tax schedule has five rates:
Authors: Steven Hamilton, Assistant professor, George Washington University