Showing posts with label Morrison Coalition Government. Show all posts
Showing posts with label Morrison Coalition Government. Show all posts

Friday 26 January 2024

A brief look at changes to Australia's personal income taxation scheme from Morrison to Albanese

 

Then Treasurer, Scott Morrison, announced the Government’s Personal Income Tax Plan (PITP) in the 2018–19 Budget. The PITP reduced personal income taxes over the next seven years through a combination of changes to tax offsets for low and middle income earners and changes in income tax thresholds. The changes were to be implemented over three steps, commencing in 2018–19, 2022–23 and 2024–25. The 2018–19 changes were targeted at low and medium income earners, with the changes in 2022–23 and 2024–25 applying to individuals on higher taxable incomes. [Australian Parliamentary Library, Budget Review 2018–19 Index]


In 2018 the Treasurer placed a tentative costing on his seven-year tax scheme change of $140 billion.


In 2019 the Morrison Government began Stage 1 of what it characterised as a 'flattened' personal income tax scheme which abandoned in large measure Australia's progressive tax scales.


At the time it was expected to cost $18 billion in 2019-20. It mainly comprised a Low and Middle Income Tax Offset (LMITO) worth up to $1,080 a year for taxpayers on $30,000 to $126,000. High income-earners (the top 20% of taxpayers on $90,000 or more) have already gained up to $135 p.a. from an increase in the upper threshold of the 32.5% tax rate to $90,000 in 2018. Overall, Stage 1 mainly went to middle income-earners on $30,000 to $90,000.


Stage 2 began in July 2022. It was projected to cost $16.4 billion in 2023. Stage 2 saw the end of LMITO on 30 June 2022 under the cessation schedule revised by the former Morrison Government. This was the end of targeted offset tax relief for those earning between $66,668 – $126,000.


The scaled Low Income Tax Offset (LITO) is still available for those earning between $37,500 or less and $66,667.


The Australian resident tax rate for 2020-21 to 2023–24.


Australian Taxation Office Table, retrieved 25 January 2024.


There were no changes to any resident personal income tax rates or threshold in the four financial years up to 2023-24.


Stage 3 of the tax scheme commences in July 2024 and as originally legislated, would have seen the 32.5% marginal tax rate will cut to 30% for one big tax bracket between $45,000 and $200,000. This was intended to closely align the middle tax bracket of the personal income tax system with corporate tax rates. While the 37% tax bracket was be entirely abolished at that time. It heavy favoured high income earners. By November 2023 it been found that this last round of tax cuts were estimated to cost around $69 billion over the forward estimates period (to 2026-27). This estimate was higher than previously provided and reflects an additional year in the forecast period, along with updates to economic parameters.


Stage 3 was amended by the Albanese Labor Government in January 2024 to reduce the largess awarded high income earners and lessen the impact of the sustained cost of living pressures.


On Thursday 25 January 2025 in a joint press release by the Prime Minister, Treasurer and Minister for Finance it was announced:


From 1 July 2024, the Albanese Labor Government will:


  • Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000).

  • Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold).

  • Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000.

  • Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.


As a result of these changes, on July 1:


  • All 13.6 million taxpayers will receive a tax cut – and 2.9 million more taxpayers will receive a tax cut compared to Morrison’s plan.

  • 11.5 million taxpayers (84 per cent of taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.

  • 5.8 million women (90 per cent of women taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.

  • A person on an average income of around $73,000 will get a tax cut of $1,504 – that’s $804 more than they were going to receive under Morrison’s plan.

  • A person earning $40,000 will get a tax cut of $654 – compared to nothing under Morrison’s plan.

  • A person earning $100,000 will get a tax cut of $2,179 – $804 more than they would receive under Morrison’s plan.

  • A person earning $200,000 will still get a tax cut, which will be $4,529. [reduced from est. $9,075] 


In addition, the Government will increase the Medicare levy low-income thresholds for 2023-24.


See full press release at:

https://www.pm.gov.au/media/tax-cuts-help-australians-cost-living



UPDATE 1 February 2024


SEE: https://treasury.gov.au/tax-cuts





MAIN SOURCES


The Guardian, Scott Morrison seeks backing for budget tax cuts without full costings, May 2018


ACOSS briefing notes, The Government’s tax cuts:

Who gains? What do they cost?, June 2019


H&R Block 2023 Federal Budget Tax Updates, undated


Australian Tax Office, Tax rates – Australian resident, September 2023 and Individual income tax rates and threshold changes, January 2024


Treasury Question Time Brief, Personal Income Tax - Stage 3, November 2023


Australian Parliamentary Library, Budget Review 2018–19 Index, Personal income tax cuts and the Medicare levy


National Press Club Address by Prime Minister Anthony Albanese, January 2024 


The Treasury, Tax cuts to help with the cost of living, January 2024


Monday 1 January 2024

 

Department of Prime Minister and Cabinet

Monday 1 January 2024 | Media release


Transfer of 2003 Cabinet records to the National Archives of Australia


In 2020 the Department of the Prime Minister and Cabinet (the Department) transferred 2003 Cabinet records, including those prepared for the National Security Committee of Cabinet, to the National Archives of Australia (the Archives).


This is the normal process and allows time for appropriate consultation with relevant agencies to ensure content released is compliant with exemptions in the Archives Act 1983.


The 2020 transfer of a small number of additional 2003 Cabinet records did not take place as it should have due to apparent administrative oversights by the Department, the Archives and security agencies. These oversights were likely as a result of COVID-19 disruptions at the time.


The additional records were located by the Department on 19 December 2023, and the Department and the Archives jointly inspected the records on 22 December 2023. These additional records have now been transferred to the Archives.


The Archives will review the additional records in consultation with relevant agencies, including security agencies, to ensure content released is compliant with exemptions in the Archives Act 1983.


The Secretary of the Department has appointed Mr Dennis Richardson to undertake an independent review of the 2020 transfer process and confirm that all relevant records have been transferred to the Archives. Mr Richardson will complete his review by the end of January 2024.


Only the Archives decides which documents are released and to whom. Neither the Department, nor any Minister, has any role in this decision. [my yellow highlighting]


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How the newspapers saw the situation on 1 January 2024......


The Guardian







Wednesday 24 August 2022

Commonwealth Ombudsman said to have recommended a review of all government appointments made during the years Morrison was Treasurer and then Prime Minister

 

The Klaxon reported on 23 August 2022:


The Commonwealth Ombudsman has called for a review of hundreds of Prime Minister and Cabinet appointments - including all those by Scott Morrison - over concerns key officials have been illegally appointed to multiple jobs.


A screenshot was included in the article which purports to show excerpts from a 41-page inquiry report by Commonwealth Ombudsman calling for an official review of multiple agencies' appointment practices during the seven years through to the end of 2021.



IMAGE: https://www.theklaxon.com.au/home/ombudsman-pmc-audit

















I note that Scott Morrison was Australian Treasurer from 21.9.2015 to 28.8.2018, Prime Minister from 24.8.2018 to 23.5.2022 and Minister for Public Service from 29.5.2019 to 8.10.2021. 


Further, on 30 March 2020 Morrison received an Appointment as Minister of State to administer the Department of Finance  and, on 6 May 2021 he received an Appointment as Minister of State to administer both the Dept. of the Treasury and Dept. of Home Affairs.


As yet no mainstream media outlet is carrying news concerning any formal recommendations by the Commonwealth Ombudsman.


Saturday 14 May 2022

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